Philippines: Galoc oil field to start production.

This is from the IHT.
This is great news for the Philippines which is almost entirely dependent upon imported oil.
The cost of fuel is quite high in the Philippines especially in relationship to income. The independent jeepney drivers are always on the virge of going under because of the slowness with which fares are adjusted to costs and customers too with limited incomes are in turn hurt by the necessary increases in fares.

Philippines' Galoc offshore oil field to start production next week
The Associated Press
Tuesday, June 10, 2008
MANILA, Philippines: The Philippines' Galoc offshore oil field will start commercial production next week, initially pumping about 20,000 barrels daily, an official said Tuesday.
The news of the first oil field development in the Philippines in 16 years came as a relief to the oil importing country amid the rapid increases in petroleum prices. A consortium of mostly Philippine companies will pump the oil.
Galoc, about 220 miles (350 kilometers) southwest of Manila, has an estimated reserve of 10 million to 20 million barrels of "high-quality oil" that is light, non-waxy, and has medium sulfur content, Energy Secretary Angelo Reyes told reporters Tuesday.
Reyes said domestic refineries "will be given the first priority" once Galoc starts flowing oil on June 16 at 17,000 to 20,000 barrels per day.
"So rather than being exported, it will be consumed locally," he said.
He said additional exploration will be conducted to confirm more reserves.
The consortion is called Galoc Production Co., which includes Oriental Petroleum & Minerals Corp., Linapacan Oil & Gas Power Corp., and Forum Energy Philippines Corp. and other partners.
Galoc's oil will be benchmarked at international prices and is expected to result in US$1.4 billion (euro890 million) foreign exchange savings for the country, Reyes said.
Reyes also said Exxon Mobil Corp. has expressed interest in exploring for oil and gas in the Sulu Sea, south of Galoc.
He said Exxon has not yet disclosed its estimate of the reserves in the area, but the government is encouraged that such a large oil producer was exploring.
"Being a major, major player, they do not go into any area until the reserves in their estimation is large and quality oil," he said.
He said company officials will meet with President Gloria Macapagal Arroyo later in the week.
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