Philippines Extracts First Oil Off Palawan Island

THE Philippines extracted Thursday its first crude oil off the Galoc oilfields in Palawan island, the Arroyo government announced.

Executive Secretary Eduardo Ermita told reporters in Malacañang that this milestone signifies the Philippines’ first step towards energy self-sufficiency.

“Light medium crude oil with a potential high yield of light ends such as gasoline” was extracted 60 kilometers northwest off Palawan island at 10:45 a.m., Ermita said, adding that the oil will be called “Palawan Light.”

“The fresh extracts were put on on board a Philippine vessel en route to our local refineries at 11:20 a.m.,” he added.

The Galoc oilfields are expected to supply at least 6 percent of the Philippines’ daily requirement of 300,000 barrels of crude oil.

“We embrace this significant development as this will help immensely help in our pursuit to be energy self-sufficient,” Energy Secretary Angelo Reyes said.

The successful oil extraction was made a day after stormy weather disrupted site operations and even prompted operators to send in a new support vessel suited for rough seas.

The Galoc site has a reservoir located 2,200 meters below the sea floor. It is expected to yield 17,000 to 20,000 barrels of oil per day in the next three months.

The Galoc oilfields were discovered in 1981, but site developments were done only in 2005 when Galoc Production Company WLL farmed in to the area. Its partners include Otto Energy, Philodrill Corp. and Nido Petroleum Ltd.

Estimates made in 2006 showed that Galoc has reserves of about 10 million to 20 million barrels of oil.

Ermita said the government is planning further studies and exploration of the site which could result in additional yields.

“The President is optimistic that this new development will positively impact on the administration’s efforts to reduce the country’s annual oil importation of $6 billion, and, in turn, also contain the increasing cost of food and other commodities,” Ermita said.