Date: June 10, 2008 11:27:52 PM EDT
Subject: [kgma] RP to start producing 10% of its oil need
Energy Secretary Angelo Reyes announced today that the development of
the Galoc oil field in northern Palawan has been completed and that
this additional output would raise local oil production to more than
30,000 barrels per day which is equivalent to some 10 percent of local
Reyes said the Philippines would earn some US$1.4 billion in two years
with the additional production of 20,000 barrels of oil per day.
â€œWe anticipate production rate of 17,000 to 20,000 barrels of oil per
day. Galoc, together with the current oil production, will be over
30,000 barrels per day. And this will account for almost 10 percent of
local demand,â€ he said.
Reyes said the Galoc Oil field development is a $120-million
investment in the energy infrastructure of the Philippines.
Reyes said the high quality oil found in the Galoc field is light,
non-waxy and has medium sulphur content.
â€œSo, it is premium oil and could be refined in local refineries here,â€
With domestic refineries given priority, Reyes said the Philippines
would also earn from the sale of crude oil which will be benchmarked
at international prices.
Reyes said the Philippines could have a foreign exchange savings of
some $1.4 billion if Galoc oil fieldâ€™s estimated 20-million barrel
fuel reserve is extracted in two years, based on the current price of
$135 per barrel.
â€œYou are looking at US$1.4 billion, if you are able to extract the
entire 20 million barrels over the expected span of two years at the
current rate of US$35 per barrel. So, that is the foreign exchange
Increasing the countryâ€™s oil and gas reserve and finding other
renewable sources of energy are part of President Gloria
Macapagal-Arroyoâ€™s energy independence reform agenda.
Reyes said further exploration works are still being done to find
additional reserves in the Galoc oil field area.
Note: Sulphur content can be monitored by X-ray Fluorescence Analyzer.