Galoc project still playing catch up

The schedule and budget of the Galoc oilfield project off the Philippines are still being assessed due to delays during the completion of the development wells.

The marginal project had already endured a recent budget increase of about US$18 million on the original $87 million project cost due to interruptions to the drilling program. The estimated project cost at the end of 2007 was $104 million, including contingencies. Additional delays were experienced during the completion of the wells, and "the impact on the project schedule and budget are still being assessed. First oil is expected in late March 2008, according to project operator Galoc Production Company, at a gross rate of 18,000 barrels of oil per day. Gaffney Cline at 23.4 million barrels of oil certifies proven plus probable reserves for the Galoc field off Palawan in Service Contract 14C. GPC owns 58% of the Galoc project on behalf of Vitol and Otto Energy. Other partners are Nido Petroleum (22%) and local Philippine companies (20%).
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