Kuwait Foreign Petroleum Exploration Company (KUFPEC) will officially exit the Galoc oil production venture in the northwest Palawan basin, with the approval of the Department of Energy.
In a disclosure to the Philippine Stock Exchange, Philodrill Corporation confirmed KUFPEC, the operator of Service Contract 14C1 (Galoc Block) has submitted an official correspondence on its departure from the venture.
As a result of KUFPEC’s withdrawal, Philodrill’s interest in the Galoc block jumped to 10.17782% from 7.21495%. This is the result of the pro rata assignment by the Kuwait-based company of its withdrawn interest.
KUFPEC earlier withdrew from the Galoc consortium in September 2020, after holding a 26.84% working interest. This was then divided among the other participants under SC 14C1, including Philodrill, Nido Petroleum Galoc Pty. Ltd., and Forum Energy Phils Corp.
The Galoc Block is located offshore northwest of the Palawan basin and has an area of 164 square kilometers, containing the producing Galoc Oil Field Development.
In 2013, Kuwait Foreign Petroleum Exploration Company (KUFPEC) entered the Philippine oil and gas industry as a partner in the Galoc project. The venture was able to extract commercial oil that eventually became the source of revenue for both interest-holders and the Philippine government.