Philippines extracts first oil shipment off Palawan island

MANILA, Philippines - The first extraction of oil off the Galoc oilfields in Palawan signifies the Philippines' first step toward energy self-sufficiency, the government said on Thursday. Executive Secretary Eduardo R Ermita told reporters in Malacañang that “light medium crude oil with a potential high yield of light ends such as gasoline" was extracted 60 kilometers northwest of Palawan island at 10:45 a.m. “The fresh extracts were put on on board a Philippine vessel en route to our local refineries at 11:20 a.m.," Ermita said as broadcast over the radio. The extracted Galoc oil, which will be called “Palawan Light," is expected to address at least six percent of the country’s daily requirement of 300,000 barrels. "We embrace this significant development as this will help immensely in our pursuit to be energy self-sufficient," Energy Secretary Angelo T Reyes said The Galoc site, which has a reservoir located 2,200 meters below the sea floor, is expected to yield 17,000 to 20,000 barrels of oil per day in the next three months. The Galoc oilfield was discovered in 1981 but site developments were done only in 2005 when Galoc Production Company WLL farmed in to the area. Its partners include Otto Energy, Philodrill Corp. and Nido Petroleum Ltd. Estimates made in 2006 showed that Galoc has reserves of about 10 million to 20 million barrels of oil. Ermita said that further studies and exploration of the site could result in additional yields. “The President is optimistic that this new development will positively impact on the administration's efforts to reduce the country's annual oil importation of US$6 billion, and, in turn, also contain the increasing cost of food and other commodities," Ermita said. The successful oil extraction came after inclement weather disrupted site operations and even prompted operators to send in a new support vessel suited for rough seas. - with Mark Merueñas, GMANews.TV