Galoc consortium strikes oil in new well off Palawan

MANILA - The consortium running Galoc in offshore Palawan has successfully flowed oil from one of the field's new wells.

In a regulatory filing, Otto Energy Limited said the recently drilled well in the petroleum block flowed oil to surface vessels at a rate of 6,300 barrels per day during production tests.

"Operations were conducted via the drilling rig 'Ocean Patriot' and oil was flared at the location," the Australian company said.

The Galoc consortium expects the new well to produce between 8,000 and 12,000 barrels per day under normal field operating conditions.

The well was successfully tested following the installation of underwater equipment used to monitor and control its production early today.

The Galoc consortium will install similar equipment in another new well drilled in the field where the group also expects to churn out oil.

The new wells will complement Galoc's two existing wells, which have been producing at an average of roughly 6,000 barrels per day.

Galoc's production is expected to increase to 12,000 barrels per day by November when its new wells begin commercial operations. It is the Philippines' only commercially producing oil field.

Otto Energy is the operator of the field. Its partners are Galoc Production Company 2 Pte, Nido Petroleum Limited, Oriental Petroleum and Minerals Corporation and Linapacan Oil Gas and Power Corporation, The Philodrill Corporation and Forum Energy Philippines Corporation.

Credit: Euan Paulo C. Añonuevo, InterAksyon.com

Malampaya funds to be used for solar panel project

MANILA - The Department of Energy (DOE) is coming up with a renewable energy program that will use the controversial Malampaya Fund.

DOE Director Mario Marasigan said P150 million from the Malampaya fund will be used to install solar panels in establishments such as schools. He said there is no final decision yet on the project.

Under the program, 100-kilowatt solar panels will be installed on the rooftops of interested schools or establishments. The cost of the solar panels can be obtained from the DOE's Malampaya fund to be loaned to a third party entity.

Once the solar panels are installed, the school or private establishment will now pay the third party for electricity generated which should be P2/kwh lower than the Meralco rate.

This will be then remitted by the third party back to the National Treasury as payment for the amount obtained from the Malampaya Fund.

After a 3- to 5-year repayment period, the third party and the establishment or school can come up with an agreement on what to do with the savings or panels installed on the roofs.

But DOE Director Mario Marasigan said there is no final decision yet on the project.

Credit: Alvin Elchico