Production Restart Delayed at Galoc Field Offshore Philippines

GPC advised that there continues to be a delay in reconnection of the FPSO Rubicon Intrepid following the disconnection that was undertaken last week due to adverse weather in the Galoc Field.

The delay is due to mis-orientation and deformation of the mooring and riser system that connects the FPSO to the seabed and subsea wells. An underwater survey was undertaken to establish the extent of the problem and an offshore construction vessel has been mobilized to the field to undertake remedial work. At this time the scope of the necessary remedial work is being established along with the likely duration.

The mooring and riser system is a key component of the overall FPSO system which is provided by Rubicon Offshore International under the provisions of an operated lease / service contract.

The Galoc field is located in Service Contract SC14-C (Galoc Sub Block) in 290m of water approximately 65km north west of Palawan in the Republic of the Philippines. The development involved the construction of two subsea completed horizontal production wells, with extended reservoir contacts, tied back to a Floating Production Storage and Offloading 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 initial field production performance.