Kuwaiti firm joins Galoc oil field consortium
MANILA, Philippines - Australian firm Otto Energy Ltd. announced yesterday the entry of Kuwait Foreign Petroleum Exploration Co. (Kufpec) as partner in the Galoc project in northwest Palawan.
Otto,which holds a 33 percent working interest in the project, said Kufpec assumed control of 26.84473 percent working interest following its acquisition of Risco Energy Pte Ltd., the parent firm of Galoc Production Co.
The Galoc joint venture partners last year approved the Galoc Phase II development and is due to commence drilling in June 2013. It expects first oil in the fourth quarter of 2014.
“Kufpec joins the Galoc joint venture during a critical period of investment that will extend production from Galoc beyond 2020,†Otto said.
Otto chief executive officer Gregor McNab said the consortium welcomes the entry of Kufpec.
“The entry of a high quality partner such as Kufpec into the Galoc joint venture is a testimony to the strength of the Galoc project overall. Kufpec brings a wealth of technical and financial experience to the project at an important stage in the long-term development of the field. On behalf of the joint venture, we would like to welcome Kufpec and we look forward to working with them as we progress Phase II and build for the future of Galoc,†McNab said.
The Galoc field consortium is eyeing first oil to flow from the drilling of two additional wells in northwest Palawan by the first half, bringing total daily production to about 12,000 barrels per day.
McNab said the realization of higher production volumes from the Galoc field will provide Otto with a long term source of funding to deliver its growing portfolio of high value exploration assets in the Philippines and Tanzania, as well as new business opportunities in Southeast Asia and onshore East Africa.
Total investment cost for the Galoc Phase 2 project is $188 million, of which Otto’s share is $62 million representing its 33 percent interest.
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