re: energy review 2day Advanced Well Technologies wins Galoc...

re: energy review 2day Advanced Well Technologies wins Galoc contract

Wednesday, March 01, 2006

PERTH-based Advanced Well Technologies (AWT) has won a major contract for the engineering, procurement and construction management (EPCM) of subsea wells for the Galoc oil field development project in the Philippines.



The Galoc development concept

AWT said it had designed cost-effective wells to optimise production through the life of the field.

"We design for life-of-field in order to maximise recovery and mitigate final abandonment costs," managing director Cameron Manifold said.

The Galoc subsea well designs include 1,000m reservoir contact to enable a peak flow rate of 25,000 barrels per day from two or three wells. These flow rates would be among the most prolific in South-East Asia, according to AWT.

The company said well engineering was progressing on schedule, with drilling planned to start early next year. First oil production is due mid-2007.

Industry estimates suggest Galoc in SC-14 contains at least 20 million and possibly up to 50 million barrels of oil. Australia's Nido Petroleum has a 22.279% stake in the field.

Discovered in 1981, the Galoc oil field is in 320m of water, about 400km south-west of Manila, and 60km north-west of Palawan.

AWT said previously stranded reserves could now be unlocked due to its well technology and field operator Galoc Production Company's unique field development.

Galoc Production is owned by Netherlands-based Vitol Holding, UK's Granby Oil & Gas and Australia's Cape Energy Group.