GPC Temporarily Turns Off Taps at Galoc Field

GPC advised that production from the Galoc field, offshore the Philippines, has been temporarily suspended with the FPSO storage being full as a result of an ongoing delay to a scheduled offloading. This delay is due to a problem with the export hose, a replacement for which has been sourced and is being mobilized from Singapore which will allow off loading during week commencing November 9th.

Equipment to undertake alternative off-loading operation is presently available in the field and may be implemented given a suitable opportunity. Meantime the FPSO remains in the field connected to the mooring and riser system and production will recommence once offloading has been undertaken.

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 ("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 initial field production performance.