The Galoc development project illustrates both our willingness to take on the challenges presented in a tough physical environment and our resourcefulness in meeting and overcoming those challenges.
In 2005, Vitol E&P acquired an indirect 40% interest in the undeveloped Galoc oil field through a farm-in transaction into part of the Service Contract 14 (SC 14) by our subsidiary, Galoc Production Company W.L.L. (GPC). The SC 14C sub-block covers an area of 700 sq km and is located 60 km west of Cullion Island in the North West Palawan Basin offshore the Philippines in the South China Sea.
The field lies in typhoon-prone waters at depths ranging from 290 to 400 metres. It is situated in an early Miocene turbidite sandstone reservoir at a depth of 2,100 metres below the surface of the sea. Discovered in 1981, initial appraisal drilling encountered oil but the intervals were found to be thin and reservoir quality moderate to poor. As a result, the field was deemed non-commercial at that time.
Modern seismic processing and interpretation in the mid-2000s significantly reduced the geological uncertainty, and in 2006 the partners received approval for a first phase development plan comprising two 1,600-metre horizontal wells tied back to the FPSO Rubicon Intrepid. Galoc production commenced just 23 months after project sanction, initially delivering around 18,000 bopd from two extended horizontal wells.
Field development was specifically designed to mitigate the extreme wave and wind conditions that can occur during typhoon season, which typically runs from May to November each year. The development wells are tied back to the FPSO via a subsea mooring and riser system based on a single seabed anchor point, enabling weather-vaning of up to 270º.
In the event of adverse metocean conditions, the riser and mooring system allows rapid shut in at the wellhead and disconnection from the FPSO, which returns to reconnect once sea conditions improve. Production from the field is controlled from the FPSO and the crude oil is processed onboard the vessel with offloading to shuttle tanker.
Permanently installed, wireless pressure gauges provide accurate, real-time measurements – the first application in the industry of this technology to a development project. This allows continuous calibration of the reservoir simulation model and close reservoir management – resulting in optimised production.
To read more about the Galoc development please read our case study ‘Innovative thinking, decisive action’.
