Granby contracts rig for Galoc Development
  by: OilOnline
  Friday, August 04, 2006

Granby Oil and Gas plc has announced that two separate contracts have been awarded for a drilling rig and subsea trees by the operator of the Galoc oil field development, Galoc Production Company. Granby, through its wholly owned subsidiary Team Oil, has a 9.14% indirect interest in the development via its 15.69% shareholding in GPC.

The Galoc Field lies in the NW Palawan basin offshore Philippines in a water depth of 320m. The field was discovered in 1981 and produced 385,000 bopd on long term test in 1988. Team Oil demonstrated the commercial potential of the field and farmed into Block C of Service Contract Area 14 (SC14) in September 2004. Team Oil subsequently arranged the financing plan for the project then exchanged its interest for a shareholding in GPC.

The Energy Searcher, a drill ship managed by Jet Drilling, will be used to drill two horizontal subsea wells which will be connected via a flowline and riser system to a floating production, storage and offloading vessel (‘FPSO’). Drilling is expected to begin in July 2007. First oil production from the field is expected in late 2007 at an initial rate of approximately 15,000 bopd.