SC 14 Northwest Palawan

SC 14 Northwest Palawan

SC 14 is located offshore Northwest Palawan covering an area of 720 square kilometers. The SC 14 was awarded on 17 December 1975 and is presently in the 15-year Production Period extension ending on 17 December 2025. The SC 14 contract is divided into seven blocks.

Block A Nido, Block B Matinloc, and Block B-1 North Matinloc

Block A Nido

Forum Energy Philippine Corporation: 8.468%

Block B Matinloc

Forum Energy Philippines Corporation: 12.406%

Block B-1 North Matinloc

Forum Energy Philippines Corporation: 19.463%

Block A Nido has an area of 23.8 square kilometres and contains the Nido Production Area which was first put in production in 1979. Block B has an area of 154 square kilometres and contains the Matinloc Oil Production Complex which was first put in production in 1982. Block B-1 has an area of 8 square kilometres and contains the North Matinloc field which was first put in production in 1989.

The Nido, Matinloc, and North Matinloc fields are in late-life and cyclical production, meaning intermittent production to allow time for oil to accumulate on top of the reservoir. Aside from production performance of the well, continued production from the three fields is dependent on oil price due to the relatively high operating cost and the ability to share operating expenses.

Block C-1 Galoc

Forum Energy Philippines Corporation: 2.27575%

Block C-1 Galoc has an area of 164 square kilometres and contains the producing Galoc Oil Field Development which was put into production in October 2008. Galoc crude oil is produced from four horizontal wells which are tied back via subsea riser to the Floating Production Storage and Offtake (FPSO) vessel Rubicon Intrepid. As of December 2016, the field had produced over 18.7 million barrels of oil. Based on an independent assessment prepared by GCA in March 2017, the estimated remaining oil reserves of the Galoc field as at 31 December 2016 is 5.06 million barrels.

In October 2016, the Block C-1 Consortium approved the drilling of Galoc-7 to test the Mid Galoc Prospect, which is estimated to contain resources of 6.2 million to 14.6 million barrels of oil. The DOE approved the drilling program and budget on 18 November 2016. Should Galoc-7 prove to be successful, the Consortium will proceed to a Galoc Phase III development which will involve the drilling of 1 to 2 horizontal production wells. The said wells will be completed subsea and tied-back to the FPSO.

Block C-2 West Linapacan

Forum Energy Philippines Corporation: 9.103%

Block C-2 West Linapacan has an area of 176.5 square kilometres and contains the West Linapacan A and B stuctures which were discovered in 1990 and 1993, respectively. West Linapacan A field produced 8.5 million barrels of oil from 1992 to 1996, when the field was shut-in due to low oil prices and high water production. West Linapacan B has never been developed.

An independent assessment prepared by Gaffney, Cline & Associates in 2014 showed the West Linapcan A to contain gross Proved + Probable Undeveloped Reserves of 18.2 million based on a three multi-lateral well development scenario.

In 2014, the former Block C-2 operator RMA failed to secure funding for the drilling of West Linapacan A-7 well, which was part of the agreed work program under Phase 2 of a Farm-In Agreement signed in May 2008. On March 12, 2015, the DOE formally terminated the operatorship and consortium membership of RMA. The remaining members subsequently re-appointed Philodrill as Operator.

In 2017, the Consortium plans to undertake an interpretation of 3D seismic data that was reprocessed in 2014.

Block D Retention Block

Forum EnergyPhilippines Corporation: 8.168%

Block D Tara Block

Forum Energy Philippines Corporation: 10%

There is currently no production or exploration activity in these two blocks.