October 10, 2008

Philippines Draws First Crude From Palawan Oilfield

Philippines draws first crude from Palawan oilfield

MANILA, Oct. 9 (Xinhua) -- The Philippines, the archipelagic state heavily dependent on imported crude oil, on Thursday announced the extraction of oil from a new offshore oilfield in western Palawan region.

Executive Secretary Eduardo R Ermita told reporters that "light medium crude oil with a potential high yield of light ends such as gasoline" was extracted in Galoc oilfield some 60 km northwest of the Palawan island at 10:45 a.m. Thursday.

Ermita said the oilfield can produce up to 10 million to 20 million barrels of oil.

"We embrace this significant development as this will help immensely in our pursuit to be energy self-sufficient," local media quoted Energy Secretary Angelo Reyes as saying.

The Galoc site, which has a reservoir located 2,200 meters below the sea floor, is expected to yield 17,000 to 20,000 barrels of oil per day in the next three months, local Tv network GMA News said.

Ermita said President Gloria Macapagal-Arroyo is optimistic that this new development will reduce the country's annual oil importation of 6 billion U.S. dollars and help contain the increasing cost of food and other commodities.

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