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AUSTRALIA-BASED Nido Petroleum Ltd. said unfavorable
weather conditions in the South China Sea the past few
weeks have pushed back first oil production from the
Galoc oil field.
In a
statement, Nido said Galoc Production Co. (GPC), the
block’s operator, gave advice that when it becomes safe
to do so, field work will continue for the replacement
of the riser section and the commencement of production
from the field.
The
arrival at the site of a specialist support vessel,
Lewak Champion, is also being awaited.
“Once
started, it is estimated that it will take six to seven
days to complete the riser replacement, and prepare for
first oil production,” said Nido.
Galoc
field, located in Service Contract 14-C (Galoc Subblock)
290 meters of water deep approximately 65 kilometers
northwest of Palawan, is estimated to have oil reserves
of approximately 10 million barrels.
Nido
earlier said the Galoc 3 horizontal production well
recently flowed oil to surface at a maximum rate of
5,397 barrels of oil per day (bopd), a development
hailed as a “milestone” leading to production service.
The oil flow to the surface—the first time since
1988—happened during a cleanup flow testing on February
20 and 21.
Emmanuel
J.V. de Dios, Nido chief executive officer, described it
as a particularly exciting time for Nido, as first oil
will deliver the cashflow to fund forthcoming
exploration programs.
“We
continue to be bullish as to what the North West Palawan
Basin holds for us. We are, of course, also very excited
about what Galoc means for the Philippines, given the
country’s dependence on imported oil,” said de Dios.
Joanne
Williams, Nido deputy manager, said that the flow
results from Galoc 4 are tremendous, and that both wells
(Galoc 3 and 4) have flowed to surface at commercial
rates and are ready to be hooked up to the FPSO.
Nido
estimates that the combined productivity of the two
wells is at the high end of the expected range, which
will be confirmed following an update to the reserves
certification which Gaffney, Cline and Associates will
perform on Nido’s behalf.
“With
the drilling and completion phase concluded, the focus
of the project has turned towards the hookup and
commissioning of the FPSO and the anticipation of first
oil,” said Williams.
Nido
said the Galoc oil flowed to surface unassisted,
consistent with expectations, and that its oil samples
have been collected for analysis.
“We are
excited to reach this important milestone in the Galoc
development project today. The Galoc-3 well has flowed
as designed and is now ready for production service,”
said Williams. |
