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Service Contract No. 14     C-1     -     Galoc  (NW Palawan)
 

(text taken from 2008 Annual Report)

 

Galoc Production Company (GPC), the operator of SC 14-Galoc Block, commenced drilling in October 2007 using the drillship “Energy Searcher”, initially with the top holes of the 2 programmed development wells and a pilot hole and later on with the full well drilling following a batch drilling program.  The drilling phase of the Galoc Development –Phase 1 was completed on January 7, 2008.  Some 2,900 meters of reservoir contact is now “behind steel” as per the Galoc Plan of Development.

 

The rig remained in the location for the installation of the subsea trees and completion and flow cleaning of the wells.  Galoc-3 ST 1 flowed oil to the surface at a restricted rate of about 5,200 barrels of oil per day on a 48/64-inch choke, while Galoc-4 flowed at a restricted rate of 6,150 barrels per day with a choke setting of 52/64-inch.  The clean up flow confirmed both wells and completion integrity and their ability to flow to the surface.  The drillship finally sailed away on February 29th and was released from service to the project upon its arrival in Singapore on March 7, 2008.

 

GPC immediately commenced the installation of subsea facilities and the mooring and riser system (M&RS) for the Floating Production, Storage & Offtake (FPSO) vessel using the construction vessel “Lewek Champion”.   The work involved installation of over 1,200 tons of equipment on the sea bed.  The installation work was completed on March 29, 2008. 

 

The FPSO “Rubicon Intrepid” arrived at the Galoc site on May 11th, ready for hook-up and commissioning.  Unfortunately, a severe tropical storm (“Cosme”) traversed the Galoc site and the vessel had to seek shelter in calmer seas.  Actual hook-up commenced on May 21st and was initially scheduled to be completed in about 3 weeks time.  With only minor work remaining for the final commissioning, another weather disturbance, typhoon “Frank”, threatened the area during the week of June 20.  The FPSO operator conducted a controlled disconnection of the M&RS.  The vessel sailed back to Batangas Bay where repair of some minor damage to the vessel’s bow thruster was undertaken.     

 

A survey of the laid down M&RS revealed significant damage to the system as a result of uncalculated laying down of the riser system resulting into development of kinks on at least 3 sections of the equipment which needed replacement.  GPC likewise discovered leaks in the lower riser package that also needed repair.  The operator immediately commenced repair works on the damaged sections of the facilities. The entire procedure extended through to September 2008, largely due to the weather disturbances which made the repair works using smaller service vessels practically impossible.  Using a larger boat “CSO Venturer” which was able to work on rougher seas, repairs and re-installation of the M&RS was completed on October 3, 2008.

 

The Galoc Field finally commenced production on October 9, 2008, initially with the Galoc- 3.  The well was flowed uninterrupted for at least 30 hours and was closed in on October 13th for pressure build up tests, as per GPC’s drawn start-up program.  The other well, Galoc- 4, was opened on October 13th at controlled choke openings for clean-up flow.  The 2 wells were simultaneously opened for full 24 hours on October 18th, achieving a couple of hours of over 20,000 barrels of oil per day with flush production.  The initial well test for the 2 wells ran for about a month in order to collect accurate well head pressure data.

 

The first Galoc Field offtake operation was carried out on November 8 – 9, 2008 using the vessel MT Ban Gong Hu with 294,316 barrels offloaded volume for delivery to Petron refinery at Limay, Bataan.  The second offtake on December 3-4, 2008, involving 305,704 barrels was sold and delivered to a Thai company.  The 3rd shipment of about 198,000 barrels from the December 30 - 31 short cargo offtake was sold and delivered to SK Energy International on January 9, 2009.

 

 

Field Shutdown and Repairs/HBMS Installation

 

Adverse weather conditions on December 14, 2008, coupled with engine failure of one of the tow vessels and the breakdown of the stern thruster of the Rubicon Intrepid caused the FPSO to drift towards the No Go Zone, prompting an emergency disconnection.  During the disconnect a retrieval line of the riser snagged preventing the riser from falling free such that it was left at a precarious position jarring the M&RS and was only lowered several hours thereafter.  Inspection/survey of the subsea facilities using an ROV was carried out on December 21st.   It was found out that the rigid spool on the riser fixed at the Lower Riser Tether Interface (LRTI) had parted from the LRTI.  Also most of the support was missing from the umbilical side of the LRTI.   It was also noted during the survey that the umbilical and tether had been laid down in large loops on the seabead at the URTI and the laydown head was also laid in a large loop to end up laying back on itself.  A twist on the riser was also seen during the survey.  As a result of the disconnection, production operations were suspended since December 14, 2008. 

 

Repairs and re-installation of the M&RS commenced in mid-January 2009, with GPC and the FPSO contractor ROI employing a number of support vessels performing different tasks. 

 

In January 2009, GPC presented the revised 2009 WP&B which includes the installation of a Hold Back Mooring System (HBMS) on the FPSO at a cost of USD 1.5MM.  This additional mooring system will provide Rubicon Intrepid with an immediate mitigation system to counter the difficulties it has experienced maintaining position and to moderate the effects of disconnection to subsea facilities and operations.  As envisaged, this enhancement to the current mooring system is expected to reduce the frequency of disconnection.

 

The installation of the HBMS and the repair works and modifications to the current M&RS were completed on the 4th week of February 2009.   The field finally started producing again on February 25th at an initial stabilized rate of 17,200 barrels of oil per day.   The second part of the 3rd shipment to SK energy with additional 161,476 barrels was completed in March 2009.   Mitsui  of Japan, on the other hand, received cargo #4 of 266,918 barrels in April 2009.  And as early as April, two additional crude cargos were already pre-sold to foreign buyers for delivery in May and June 2009.

 

 
 

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