The final investment decision on Phase 2 of the Galoc development offshore the Philippines is now approved according to operator Otto Energy Ltd. (ASX:OEL).
Offshore staff
SYDNEY, Australia –The final investment decision on Phase 2 of the Galoc development offshore the Philippines is now approved according to operator Otto Energy Ltd. (ASX:OEL). Capex on the project will be $188 million.
Phase 2 requires drilling of two subsea wells that will be tied back to theexisting FPSO of the SC14C joint venture group. Production is expected to go from 5,600 b/d of oil to more than 12,000 b/d with the two new wells. The project also includes a second production riser and control umbilical.
Diamond Offshore’sOcean Patriotsemisubmersible will drill the new wells, and there is an option on a third well.
A final decision on the northern exploration well is planned for 4Q 2012 and this can be drilled immediately following the Phase 2 development well campaign.
Followingsuccessful recommissioning in April 2012, the contractor entitlement reserves (remaining recoverable volumes) for the Galoc oil field have increased by 156% to 8.9 MMbbl on a Proven (1P) and by 134% to 13.4 MMbbl on a Proven and Probable (2P) basis, says Otto.
