Nido Petroleum Limited announces that the Galoc Joint Venture has approved the Final Investment Decision (FID) on the Phase II Development of the Galoc oil field in the North West Palawan Basin, offshore Philippines.
The Phase II Development involves the drilling of two new horizontal wells tied back to the existing Floating Production, Storage and Offloading facility (FPSO), the ‘Rubicon Intrepid’.
The total field production rates at Galoc are expected to increase from 5,600 barrels of oil per day (bopd) to more than 12,000 bopd following start-up in the second half of 2013.
The total project capital expenditure for the Development is forecast at US$188 million. Nido holds a 22.88% interest in the Galoc oil field in Service Contract 14 Block C1 and Nido’s share of the expenditure is forecast at US$43 million.
Nido’s Managing Director, Phil Byrne, said, “The Galoc Phase II Development delivers incremental reserves and extends the field life, and as such, it is a key element of our strategy to maximise value from our producing and development assets in the near term.
“We are pleased to reach such a significant milestone in advancing the Galoc Phase II Development and look forward to working with the Operator to deliver the project safely, on time and on budget.”
The Joint Venture has secured the “Ocean Patriot” semi-submersible drilling rig, owned by Diamond Offshore, to drill the program of two development wells. The contract includes an option to drill a third well on the Galoc North near field exploration prospect, following the completion of the two development wells.
Press Release, September 11, 2012