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This activity signals the start of the Philippines’ first oil field development in 15 years.
Nido deputy managing director Joanne Williams said the Galoc-3 and Galoc-4 development wells were targeting 23.5 million barrels of proved and probable (2P) reserves as certified by Gaffney, Cline and Associates.
“With an asset producing significant cash flow, the next focus in Nido’s strategy is to develop and execute a significant exploration drilling campaign targeting big-hit potential,” she said.
“Galoc production will provide the means to mature and explore the world class acreage offered by Nido’s Service Contracts 54, 58 and 63 in the North-West Palawan.”
Nido, which has a 23% stake in Galoc, will be entitled to about 4000 barrels of oil per day once production starts in the first quarter of next year.
Operator Galoc Production plans to initially drill two deviated horizontal wells to penetrate 1600m of the oil-bearing sandstone reservoir at depths of around 2000m.
Production will be coursed through a floating storage and offloading facility.
The field will be tested during the first six months to enable a thorough assessment and optimisation of the subsequent commercial production.
Other members of the consortium are Alcorn Gold Resources, Forum Energy, Oriental Petroleum, PetroEnergy Resources, and Philodrill, with Galoc Production as operator.
