Matahio Energy, the majority stakeholder of the Galoc oil field service contract, said it identified new opportunities in the block located offshore northwest Palawan.
“The Galoc field is an important part of Matahio’s growing portfolio. The field’s lifting costs are remarkably low for a late-life offshore field and can provide stable cash flow for many years to come, with the abandonment liability significantly mitigated by an existing abandonment fund,” Matahio Energy chief executive Dr. Wai-Lid Wong said in a statement.
“This cash flow will be used to fund other acquisitions and organic growth opportunities in the Philippines and across the region,” he said.
Matahio Energy completed two acquisitions that would pave the way for the energy company to build a more significant presence in Southeast Asia. The company acquired NPG Pty. Ltd., which owns a 78.8-percent operating interest in the producing Galoc field.
Matahio also acquired a legal entity that wholly owns the floating production storage and offloading unit Inteprid Balanghai, which is stationed on the Galoc field.
“The Matahio team has always found the Philippines to be a collaborative and supportive environment; we are excited to build on our relationship with the Galoc’s Filipino Joint-Venture Partners and the Department of Energy. We are confident we can work together to advance the energy industry in the Philippines,” Wong said.
The sale and purchase agreements for both transactions were signed last year. Galoc has produced over 24 million barrels since the first oil flowed in 2008.
Matahio is adding 1.8 million bbl 2P reserves starting January 2023, with net production of 1,200 barrels of oil per day.
“At prevailing oil prices and contemporary OPEX rates, the Galoc field is expected to generate positive cash flow until 2028,” the company said.
“Matahio has identified other prospects within the service contract, which can be tied back to the FPSO Intrepid Balanghai,” it said.
The FPSO Intrepid Balanghai is considered an important piece of infrastructure in the Philippines.
“Matahio believes there are substantial commercial opportunities for the future redeployment of the FPSO, specifically in unlocking stranded assets in the Philippines or elsewhere in Southeast Asia,” the company said.