Galoc oil field shows potential for expansion

The Galoc oil field in northwest Palawan showed promise for expansion in 2019 following a favorable third party assessment contracted by Australian oil and gas firm Nido Petroleum Ltd. and its partners.

In a disclosure to the Australian Stock Exchange, Nido said ODIN Reservoir Consultants Pty Ltd. has completed an independent assessment, which is an update to the previous work by Gaffney Cline & Associates.

The firm said ODIN has also estimated a “chance of development” for the Galoc mid area development project.

ODIN’s assessment showed the Galoc field is estimated to contain contingent resources of as low estimate (1C), 13.3 MMstb as best estimate (2C) and as highest estimate (3C).

The potential oil volume spotted in the Malolos oil field, based on ODIN’s assessment, was described as “contingent resource” and ranges between a “low estimate” of 5.9 million stock tank barrels ( MMstb) (1C) and a “high estimate” of 24.5 MMstb (3C) with the “best estimate” of 13.3 MMstb of “total oil in place” (2C).

Based on Nido’s net working interest (NWI), the Australian company can be entitled to a potential contingent resources of 3.3 MMstb (1C), 7.4 MMstb (2C) and 13.7 MMstb (3C) net from the project.

“It must be appreciated that the contingent resources reported herein are unrisked in terms of economic uncertainty and commerciality. There is no certainty that it will be commercially viable to produce any portion of the contingent resources,” Nido said.

The Galoc oil field is comprised of the producing central field area and the undrilled northern extension Galoc mid area, where drilling of Galoc-7 appraisal well is considered to determine contingent reserves.

Nido said preliminary development plans for the Galoc Mid Area are based on drilling two horizontal, subsea development wells tied back to the Galoc Field Floating Production Storage and Offloading ( FPSO) facilities with first production in 2019.

“In the case of Galoc-7 success, the (Galoc mid area) is being considered as a potential Phase III development project using conventional horizontal drilling and sub-sea completion technology,” Nido said.

“The development plan is contingent upon the success of Galoc-7 and as a result is still being optimised. It has not yet been submitted to the Philippine authorities for approval,” it said.

Earlier, Nido and its joint venture partners said they are still keen on pursuing the expansion of the Galoc oil field in northwest Palawan to boost production.

Other partners in the consortium are Galoc Production Co. No. 2 Pte. Ltd. (26.84 percent), Oriental Petroleum & Minerals Corp. and Linapacan Oil Gas & Power Corp., (7.79 percent) Philodrill Corp. (7.79 percent) and Forum Energy Philippines Corp. (2.28 percent).