Kuwait's Kupfec takes equity in offshore Palawan's Galoc oil field

Kuwait Foreign Petroleum Exploration Co. (Kufpec) took a 26.84473 percent working interest  in the Galoc oil field in northwest Palawan, Australian Otto Energy Ltd. said Friday. The equity interest in Galoc follows the acquisition of Risco Energy Pte. Ltd. by Kufpec, Otto Energy noted in a disclosure to the Australian Stock Exchange, saying Risco is the “ultimate parent of Galoc Production Co. No. 2 Pte. Ltd.” A unit of Kuwait Petroleum Corp., Kufpec—together with Shell Philippines Exploration B. V. and South China Resources Inc.—was a part of the Service Contract 60 consortium, but the Despite the entry of Kufpec in Galoc, Otto Energy remains the lead operator and continues hold a 33-percent working interest in the project. The other players involved in the Galoc oil field are Nido Production (Galoc) Pty. Ltd., which holds a 22.87952 percent interest in the project, Oriental Petroleum & Minerals Corporation and Linapacan Oil Gas & Power Corp. (7.78505 percent), The Philodrill Corp. (7.21495 percent) and Forum Energy Philippines Corp. (2.27575 percent). Kufpec is entering the consortium at a critical time. “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," said Otto Energy CEO Gregor McNab. The Kuwaiti players brings a wealth of technical and financial experience to the project at an important stage in the long-term development of the field, McNab noted. "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," he added. The Galoc field started gushing oil in 2008, and was expected to remain in production beyond 2020. Last year, the joint venture approved the the second phase of development, with a new round of drilling to commence in June and first oil expected in fourth quarter of the year. The Galoc oil field is set to deliver more than 12,000 barrels of oil per day (bpd) later this year, or over 150 percent more than its current outs of 4,750 bpd when Phase II starts to crank out additional production, according Otto Energy. Phase II, according to the project operator, the covers drilling and completion of two subsea wells tied to the existing offshore infrastructure. Earlier, Otto announced the drilling rig "Ocean Patriot" was secured from Diamond Offshore for the Galoc drilling program. The rig arrived in Singapore in mid-April, ahead of a planned survey, before being deployed in Galoc in late-May. — VS, GMA News