Operations Review
Production from the Galoc Field in 2010 totaled 2,694,720 barrels, a slight decrease from the total output of 2,717,650 barrels in 2009. The field could have produced an additional 250,000 barrels were it not for the disconnection of the FPSO Rubicon Intrepid and the repair works on the vessel’s thrusters towards the end of 2010. Despite the month-long interruption in production, the produced volume still surpassed the production target of 2.24 million barrels for the year.
A total of eight (8) offtakes were carried out in 2010. The buyers included Nippon Energy of Japan, and Chevron, Hyundai Oil and SK Energy, all of South Korea.
In July 2010, the FPSO contractor Rubicon Offshore, Inc. (ROI) proposed to introduce improvements on the existing mooring and riser system (M&RS) which aimed to minimize damage to the M&RS during disconnections. The new system would utilize a clamp weight anchor and torpedo buoy system to hold the end of the M&RS when disconnected.
Actual work on the modification commenced on the third week of August with the removal of the anti-snag frame from the two wells and installation of a new single protection frame. Production operations were temporarily suspended during the period. The M&RS modification was completed on the second week of September with the installation of the tether saddle and torpedo buoy.
A major operational interruption occurred during the fourth quarter of the year. On October 18, the FPSO was disconnected from the hold-back mooring system as part of the precautionary measures ahead of the typhoon “Megi” hitting the South China Sea area. As weather conditions deteriorated, the pennant line holding the newly installed clump weight and torpedo buoy parted that prompted a temporary shutdown of operations. A complete disconnection ensued with the M&RS being dropped to the seafloor and the FPSO moved to safer berthing location near shore.
During the month-long period of non-operation, ROI and the field operator Galoc Production Company (GPC) took the opportunity to carry out repair works and replacement of the vessel’s thrusters in Batangas Bay. Immediately after completion of the thruster works, the Rubicon Intrepid sailed back to the Galoc area for reconnection to the mooring system and subsea facilities. Production was resumed on November 24, 2010.
Phase 2 Development
As part of the assessment of the Galoc Field for possible Phase 2 development, GPC embarked on re-processing of 3D seismic data in 2009 to further evaluate the Galoc structure and to identify possible locations for drilling additional development wells. The re-processing work was completed in December 2009 and was used in the evaluation work that was carried out for the most part of 2010. As the evaluation work progressed, the joint venture partners held a series of technical workshops to develop strategies for a second phase development. From these workshops, a number of drilling locations were identified and a number of possible production facilities set-ups were in investigated. The final decision, which was initially expected to be made in September 2010, has been deferred pending resolution of the issues involving the FPSO contract and the full completion of the Galoc field evaluation. |
