GPC Wraps Up Repairs on FPSO at Galoc Field Offshore Palawan

Galoc Production Company (GPC), the Operator of the Galoc Field offshore Palawan, Philippines, confirmed that the Mooring and Riser System has been successfully repaired and reconnected following damage incurred during Typhoon Frank (Fengshen) in late June. Integrity testing and ROV inspection of the subsea equipment has revealed indications of accelerated corrosion of some hydraulic fittings and the decision has been made to replace these prior to introduction of hydrocarbons into the riser system. The associated work program is underway with field activities scheduled for next week and, subject to suitable weather conditions, first oil is expected in mid September.

The Galoc field is located in Service Contract SC14-C in 290m of water approximately 65km north west of Palawan. The development involves the construction of two subsea completed horizontal wells, with extended reservoir contacts, tied back to a FPSO facility via a short seabed pipeline and mid-water riser system. Most likely, oil reserves as estimated at time of commitment to the development in 2006, is approximately 10 million barrels. The reserves estimate and requirement for additional wells and facility capacity will be reassessed following an analysis of results from both development drilling and initial field production performance.