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Government makes P490M from Galoc oil production


The Philippine government made P490 million from the Galoc oil field in northwest Palawan in the 12 months to June 2010, an Energy official said Tuesday. It is now up to the national and local governments on how the money from the Galoc field’s production – since it was declared commercially viable in June 2009 – shall be divided, Energy Undersecretary Ramon Oca told reporters in an interview. The Galoc field has produced over four million barrels of oil since October 2008 when the consortium, led by Galoc Production Co., started pumping oil from the well. The field now produces 8,600 barrels per day. The consortium is studying the possibility of drilling two more wells to discover additional reserves, and increase Galoc’s output by 4,000 bpd to 12,600, and production reserves by five million barrels to 15 million. While Galoc Production holds a 50 percent stake in service contract 14C, which covers the Galoc field, Australia’s Otto Energy Ltd. and the Vitol Group hold the rights to the field's production. "The field continues to produce in line with expectations and Otto is working with the operator to continue to improve the facility performance and plan for appraisal and development of the remainder of the field," Otto Energy said. The other stakeholders in SC 14C are Nido Petroleum Ltd. (22.28 percent), Oriental Petroleum & Minerals Corp., and Linapacan Oil Gas & Power Corp. (7.57 percent each), Philodrill Corp. (7.03 percent), Forum Energy Corp. (2.27 percent), Alcorn Gold (1.53 percent), and PetroEnergy (1.03 percent). —VS, GMANews.TV

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