Unocal, Filipino consortium sign agreement to study Galoc oil and gas discovery
Manila, Nov. 12, 2002 -- Unocal Sulu Ltd., a wholly-owned subsidiary of Unocal Corporation, has recently signed an agreement with a Filipino exploration consortium led by Alcorn (Production) Philippines, Inc. and Nido Petroleum of Australia to carry out a phased study of the Galoc oil and gas discovery in Service Contract (SC) 14 in the Philippines, with the intent to develop Galoc should the investigations show it to be economically feasible. Execution of the study will give Unocal the option to farm-in to the Service Contract.
Phase I of the Study, consisting of seismic reprocessing and interpretation, geological and reservoir engineering studies as well as preliminary facilities analysis, is anticipated to take 6 to 9 months to complete. Following encouraging results from Unocal's Phase I study, the company will proceed with Phase II, a more detailed technical analysis and engineering design. Contingent upon the outcome of the Phase II analysis, Unocal will become a full partner in the service contract at which time it will purchase all rights to the seismic data.
The Galoc discovery was made in 1981 in a water depth of 1,100 feet. Five wells were drilled on the geologic structure, all of which tested oil and gas. Recoverable reserves are currently estimated in the range of 30-50 million barrels of oil. Given the marginal reserve size and deep water setting, it is felt that Unocal's industry leading low cost approach to deep water operations provides the best chance for a successful development.
Current Operator Alcorn (Production) Philippines Inc. is joined in Block SC 14C by fellow Philippine companies: Alcorn Philippines, Alcorn Gold Resources, Oriental Petroleum and Minerals, Linapacan Oil, Gas & Power, The Philodrill Corp, Altisima Energy, Basic Petroleum and Minerals, Petroenergy Resources, and Phoenix Energy as well as Perth based Nido Petroleum.
Unocal Sulu, Ltd. Is a wholly owned subsidiary of Unocal Corporation, one of the world's largest independent natural gas and crude oil exploration and production companies. Based in El Segundo, California, Unocal's principal production operations are in North America and Asia. Unocal is also one of the world's largest producers of geothermal energy with operations in Indonesia and the Philippines.
Updated: November 2002