first new oil field development in 15 years set to …

FIRST NEW OIL FIELD DEVELOPMENT IN 15 YEARS SET TO START

Energy Secretary Angelo T. Reyes disclosed that the country’s first new oil field

development in 15 years will commence soon in the Galoc Field off Palawan. Under

Service Contract 14C, a consortium led by Singapore-based Galoc Production

Company (GPC) and its partners - Alcorn Gold Resources, Forum Energy, Nido

Petroleum, Oriental Petroleum, PetroEnergy Resources, and Philodrill – will spend

US$86.4 million to develop the field with production expected to commence as early

as the first quarter of 2008

Reyes said the Galoc field development is expected to increase the country’s current

monthly oil production of about 17,000 barrels to about 500,000 barrels. This project

also marks several other milestones being the first oil field development in the

country in 15 years after West Linapacan, the first offshore development in 7 years

after Malampaya, and the first use of horizontal wells in the Philippine oil and gas

development. Reyes added that this project is part of DOE’s intensive search for

indigenous energy sources aimed at ensuring energy security for the country.

Located about 65 kilometers northwest of Palawan, the Galoc field was discovered in

1981 by Philippine Cities Service and yielded oil during production tests in the late

1980’s but was never commercially developed. Skyrocketing oil prices and new oil

development technologies have made the current efforts economically viable. Two

deviated horizontal wells in 290 meters of water will be initially drilled by GPC to

penetrate 1600 meters of the oil-bearing sandstone reservoir 2 kilometers beneath.

Production will be coursed through a floating production storage and offloading

(FPSO) facility and the field will be tested during the first 6 months to enable a

thorough assessment and optimization of the subsequent commercial production.

The drilling is scheduled to start in the second week of October with the arrival in the

country of the drillship Energy Searcher.

Jeff Davison, GPC Chief Operating Officer said “GPC is delighted about the

imminent commencement of the Galoc field development and the rapid progress is a

testament to the progressive and cooperative nature of our Philippine partners, both

public and private. We look forward to achieving oil production in the first quarter of

2008.” Alfredo Ramos, Chair and President of Philodrill, added that the substantial

investment in the Galoc field development is further proof of continuing and

heightened investor confidence in the country under the Arroyo administration.

The project’s environmental management plan has received official public approval

and NGO endorsement. DENR issued an Environmental Compliance Certificate

(ECC) for the Galoc development in August 2006 and the Palawan Council for

Sustainable Development issued a Strategic Environmental Plan Clearance in

December 2006.

Galoc Oil Field…Discovered 1981… Development 2007

Working Interests:Nido Petroleum Ltd 22.28%Galoc Production Company (Operator) 58.29%Oriental/LOGPOCOR 7.58%Philodrill Corporation 7.02%Forum Energy 2.27%Alcorn Gold Resources 1.53%Petroenergy Resources Corp. 1.03%

Galoc

FACT SHEETLocation: SC14 Block C, PhilippinesWater Depth: 290mDiscovered: 1981Geological Setting: Tertiary turbidite sandstone with 57+m

oil columnPast Drilling: Two wells plus two sidetracks drilled

into the structureTesting: 5 month extended well test (1988),

produced 385,000 bbl, 35º API oilSeismic: 3D seismic coverage over fieldEstimated project cost: US$86 million including contingencyScheduled First Oil: 1Q 2008Estimate Initial Production: 17,500bopd

Drillship ‘Energy Searcher’

FPSO

FPSO Mooring TetherFPSO Mooring Tether

FlowlinesFlowlines &&UmbilicalsUmbilicals

TreesTrees

30m500m

Water Depth 290m

Riser BaseRiser Base

Mooring BaseMooring Base

228m

Courtesy of the Galoc Production Company

Up to 1600m horizontal producing section

Attachment 1

GCA Certified Reserves for Galoc1st Phase 2nd Phase

1P 9.7 MMstb 3P 41.9 MMstb2P 23.5 MMstb

Drilling Galoc Development Wells...A Step-by-Step Guide

1. Drill Galoc 3 ‘top hole’ to 13 3/8”casing point (~950m) 6 days2. Drill Galoc 4 ‘top hole’ to 13 3/8”casing point (~950m) 7 days3. Drill 12 ¼” ‘Pilot Hole’ through reservoir & into water leg; core 54m of reservoir, log & collect fluid samples 9 days4. Plug back ‘Pilot Hole’ to 13 3/8”casing shoe 2 days5. Drill & complete Galoc 4 horizontal production well 20 days6. Drill & complete Galoc 3 horizontal production well 24 days7. Install subsea trees & conduct preliminary production test of Galoc 3 & 4 wells 13 days

Drill Ship‘Energy Searcher’

12

3

4

5Oil-Water Contact

Gas-Oil Contact

6

Seabed (~290m)

Galoc Reservoir (~2,200m)

Est. Time

7

•Pilot Hole

•Subsea Location

•Galoc-4

•Galoc-3

3

5

6

Galoc Field Development

Attachment 2

GPC Information Pack – October 2007 1

Galoc Field Development

A project for

Undertaken by

Together with

SC14-CGaloc Block

Department of Energy

THE PHILODRILL CORPORATION

Oriental Petroleum & Minerals CorporationLinapacan Oil Gas & Power Corporation

Alcorn Gold Resources Corp.


Highlights

• Sub-block of Service Contract 14, a 70 thousand hectare area located Northwest Palawan, awarded 17 December 1975

• 1st for Philippines

Sandstone reservoir development in the PhilippinesDevelopment utilizing horizontal wellsOffshore oil field development in Philippine waters in the last 15 years

• Development in 290m of water over 50km to nearest land, using:

2 horizontal subsea wellsInnovative subsea layoutSingle leg multi riser mooring systemFloating Production, Storage and Offloading (FPSO) vessel with dynamic positioning assistance

• Estimated reserves of approximately 10 million barrels – most likely case

• Project cost of US$ 86.4 million


Milestones

Aug 2005 • Department of Energy (DOE) approved GPC’s farm-in to Service Contract 14-C (SC14-C) Galoc Sub Block

Nov 2005 • DOE confirms GPC as Operator of SC14-C Galoc Sub Block

Dec 2005 • Well engineering and construction management contract awarded – Advanced Well Technologies

Mar 2006 • Plan of Development involving Extended Production Test (EPT) approved by the DOE

Aug 2006 • Environmental Compliance Certificate issued by the Department of Environment and Natural Resources (DENR)

• Drill rig contract awarded – Jet Drilling

Sep 2006 • Floating production, storage and offloading (FPSO) unit contract awarded – Rubicon Offshore International

Dec 2006 • Strategic Environmental Plan Clearance issued by the Palawan Council for Sustainable Development

Mar 2007 • GPC obtained project financing from IntesaSanpaolo

Jul 2007 • Installation contract awarded - EMAS

4Q 2007 • Arrival of DS Energy Searcher and commencement of well construction / drilling

• Commencement of equipment installation on seabed, 290m below the surface

1Q 2008 • Arrival of the FPSO, commencement of hook up & commissioning

• 1st oil & Commencement of Extended Production Test

2Q 2008 • Monitoring and testing of reservoir performance

• Assessment of ultimate potential

3Q 2008 • Completion of EPT and eitherDeclaration of CommercialityDecommissioning and abandonment


The Galoc Field

The Galoc Oil Field (Galoc) is located 60 km northwest of Palawan within the Department of Energy (DOE) Service Contract 14. Discovered by Cities Services in 1981, Galoc is the first oil discovery in sandstone reservoir in the Philippines. All other commercial production to date has been derived from limestone reservoir.

Water depth at Galoc ranges from 250 to 400m with the oil located in a turbidite sandstone reservoir at a depth of approximately 2,100m below the sea surface.

GEOLOGICAL PARAMETERS

Water Depth of 290 to 350 m

Area extent of 17 km2

Miocene turbidite sandstone

Reservoir depth of 2100+ m.ss

Oil gravity of 35o API

Location of Galoc Field


Carcar

MatinlocMiddle-UpperMiocene

PagasaLower-MiddleMiocene

GALOCLower Miocene

Seawater

Limestone

Claystone

Quartz & Siltstone

Turbidite sand with interbedded sandstone, siltsone and claystone

Limestone

Sandstone

Limestone

200 TVDSS

400 TVDSS

1000 TVDSS

2175 TVDSS

Depth LithologyFormation

Galoc Geology

Appraisal was conducted in 1988 with a vertical well and 2 sidetracks that produced nearly 400,000 barrels of sweet (low sulphur content) 35o API oil with flow rates up to 5,000 barrels per day (bpd). These rates were deemed insufficient to support commercial development at that time.

Existing Wells

Water Contact

Reservoir Top Structure – Oil water contact of 2100m below sea surface


Since then data from the 1988 appraisal have been extensively re-evaluated and higher quality 3-D seismic data was obtained in 1997. The outcome of this has been recognition of a channelised turbidite reservoir within the field. This combined with improvements in technology enabling the drilling of wells to increase access to the reservoir, and facilities capable of producing and handling the fluids, has made commercial development viable.

This was the basis of the Plan of Development approved by the DOE in March 2006.

The most likely economically recoverable reserves are estimated to be approximately 10 million barrels (mmbbls). However, there is a substantial range of uncertainty in this figure.

Strong confidence in mapped Galoc structure from 3D seismic data

3D seismic interpretation suggests high quality channel sands in addition to previously identified medium quality reservoir in a 50:50 ratio

Demonstrated by commercial production rates during extended well test

Roo1

Roo2

Roo3

SL

Galoc-3

Galoc-4

Sub seabed contours defining the reservoir

Location of development wells

Channels indicating enhanced good reservoir quality

Reservoir Topography


The Development

Management of reservoir uncertainty is pivotal to the development of Galoc. The Plan of Development is to initially undertake an Extended Production Test to confirm the potential and then optimize production from the Galoc reservoir.

Phase 1 involves the drilling of 2 horizontal wells, one into each of the 2 main channels, in order to achieve both economic rates of production and maximize the recoverable reserves. “Fit for purpose” facilities will be installed to minimize capital exposure while enabling realization of value and assessment of potential returns.

The 2 wells will have around 1,600m of reservoir contact in each channel. These well will be controlled by equipment located on the seabed in approximately 290m of water and designed to be maintenance free. The 2 wells will have a capacity to produce up to 25,000 barrels of oil per day (bopd) along with associated gas.

FIT FOR PURPOSE

Well design providing extended reservoir contact

Leased FPSO with short minimum term

Adaptation of proven technology for innovative mooring and riser system

Re-use of subsea equipment, including subsea trees and flowlines

Development Schematic & Key Contractors

Water Depth 290m

Horizontal Wells

FPSO

FPSO Mooring Tether

Flowline & Umbilical Riser Trees

30m500m

Riser Base

Mooring Base

228m


Subsea equipment will comprise hardware to control flow from the wells, principally the ‘trees’ located at the top of the well bores, and the foundation for the ‘risers’which connect the seabed equipment with facilities floating on the sea surface. The reservoir fluids will be transferred to the Floating Production, Storage and Offloading (FPSO) unit where the water, oil and gas will be separated. Oil will be transferred to storage, while water will be cleaned prior to discharge to sea and gas will be used for power generation with any excess flared.

Installation Vessel – Lewek Champion Subsea Trees Refurbished

FPSO – Rubicon IntrepidDrill Ship – Energy Searcher


The Development Progress

Development of the Galoc Field commenced in mid 2006 with the placement of the contract for the drill rig, this being the first of the major contracts.

The first activity in the field was the seabed survey undertaken during September 2006. However, the focus of activities has been the procurement and construction of the key facilities. This involved placement of major contracts (provision of an FPSO and Installation of Subsea & Production Facilities), refurbishment of the subsea trees, fabrication of the process facilities to be located on the FPSO and conversion of the FPSO itself, along with design and fabrication of the mooring and riser system. This work has continued throughout 2007.

The next phase of the development is well construction. This will be followed by the installation of the flowlineand umbilical, and lastly, hook-up of the FPSO.

Project Sanction

1st Oil Award Contracts ECC Issue FPSO to

ShipyardDrill RigWindow

FPSOOnsite

Installation Contractor

On-Site

FPSOOn site 2nd wk Feb 081st Oil 1st Mar 08

Installation2nd wk Jan 08

Well ConstructionStart 1st wk Oct 07Finish 4th wk Dec 07

Oct~Dec 07 Jan 08 Feb 08 Mar 08 Aug 06 Aug~Sep 06 Sep 06 Jun 07


Well Construction

Two new wells, Galoc-3 and Galoc-4, will be drilled from a single wellhead cluster location in approximately 290m of water. These will be deviated: Galoc-3 will target the Roo 1 channel system and Galoc-4 the Roo-2 channel. Horizontal reservoir penetration of 1600m is planned, but actual well lengths will be dependent on the quality of reservoir intersected. A pilot hole will be drilled at the heel of the Galoc-4 well for field appraisal purposes.

The well design is conventional. The well depths, pressures and temperatures are fairly benign and wells previously drilled in the field do not indicate that special resources are required during drilling and completion of wells. To measure real time pressure and temperature permanent downhole gauges will be installed.

The subsea tree system will be configured for diverless installation and flowline connection. It will also accommodate the downhole gauges and potential gas lift requirement. Since both wells will flow into a single production flowline, subsea production chokes will be provided to balance the flow from each well.

Water Depth 290m

Horizontal Wells

Drill Ship

Well Construction


Installation

The installation phase involves installation of the seabed flowline and umbilical, jumpers, riser and mooring system, followed by associated tie-ins of these equipment.

The riser system will consist of a flowline and control, chemical and service umbilical risers which will be connected to the subsea trees using a simple structure on which the seabed chokes, umbilical termination assembly and seabed jumpers will be located. The riser will be supported by distributed buoyancy which, along with the mooring system will be designed to allow rapid disconnection of the FPSO during adverse weather conditions and rapid reconnection when the sea conditions improve. The riser system will be rated for shut-in wellhead pressure.

Water Depth 290m

Horizontal Wells

FPSO Mooring TetherFlowline & Umbilical Risers

Trees

30m

Riser Base

Mooring Base

Installation Vessel

Direct hydraulic controls will be used to control the tree valves and production chokes from the FPSO via a hydraulic umbilical. Well kickoff using nitrogen will be provided via the umbilical.

Jumpers

Installation


FPSO Hook-Up

This phase involves the initial connection of the mooring and riser system, and commissioning of the subsea system and process facilities.

The mooring and riser system is based on a single seabed anchor point and provides weather-vaning of up to 270 degrees. This is possible due to the bi-directional met-ocean conditions at Galoc and the dynamic positioning capability of the FPSO.

The process facilities and associated utilities will be located in the forward part of the FPSO. Flow from the subsea wells will be controlled from the FPSO along with control of the onboard processing facilities.

FPSO

Water Depth 290m

Horizontal Wells

FPSO Mooring Tether

Flowline & Umbilical RiserTrees

Riser Base

Mooring Base

JumpersFPSO Hook-Up


The Operations

Operations in the field will be controlled from the FPSO with the seabed equipment remotely operated. Crude oil will be offloaded to a shuttle tanker connected to the FPSO for about 24 hours every 14 or so days initially. The frequency of offloading will decrease with production rate.

A support boat will also operate in the field when not engaged in transporting supplies to and from the onshore supply base at Batangas. The 30-man crew for the FPSO will be transferred to and from the FPSO by helicopter operating from either El Nido on Palawan or Manila.

Security for operations in the field will be provided by the Western Command of the Department of National Defense thru Joint Task Force Malampaya with personnel deployed on one of the boats in the field and additional support available at El Nido, as required.

The field life will range from 2 to 6 years depending on reservoir performance.

A further phase of development (Phase 2) may be initiated dependening on realization of reservoir performance during initial production. If justified, facilities will be enhanced with additional wells to improve reservoir drainage and/or provide pressure support.

Water Depth 290m

FPSOTanker

Offloading Hose

Production Operations


Safety & Environment

GPC is committed to undertake all its activities in a manner which protects and preserves both people and the environment at all times.

To ensure this, GPC will plan and perform all activities such that safety of personnel is safeguarded and effects on the environment are either avoided, or kept to an acceptable level while meeting all statutory requirements.

GPC conducted a full Environmental Impact Assessment from 3Q 2005 to 3Q 2006. This was the basis of the Environmental Compliance Certificate obtained from the Department of Environment and Natural Resources in August 2006 as well as the Strategic Environmental Plan Clearance issued by the Palawan Council for Sustainable Development in December 2006.

GPC has developed plans for managing the impact of an emergency on the environment following the Emergency Management Cycle.

GPC Safety Commitment

PEOPLEPEOPLE

EnvironmentEnvironment

AssetsAssets

Emergency Management Cycle

Investigation

Restoration

Recovery

Business Interruption

Response

Notification

Performance Review Training/Exercises

Implementation Strategies

Risk Reduction Measures

Communication Strategies

Risk Assessment/Management

HSE Systems Development

Community Consultation

Contractor Selection, Inductions

Pre-PlanningRecovery

Mitigation

Preparedness


The Operator - GPC

Galoc Production Company (GPC) was formed in mid 2005 with the primary objective of developing the Galoc Oil Field, located offshore Palawan in the Republic of the Philippines.

GPC concluded a Farm-In Agreement with the Service Contract 14C Galoc Sub Block (SC-14C) consortium in August 2005. This was followed by an approval from the DOE of GPC as Operator of SC-14C.

As Operator, GPC is responsible for the operations undertaken on behalf of the joint venture partners of SC14-C Galoc Sub-block. This includes engineering, planning, budgeting and operation of field using internationally accepted industry standards, and reporting to the DOE. GPC is also responsible, in conjunction with the DOE, for liaison with other stakeholders and public announcements.

GPC is owned by Vitol GPC Investments SA (68%), Team Oil Ltd, a wholly owned subsidiary of Granby Oil & Gas plc (16%), and Cape Energy Philippines SA (16%).

Philippine PartnersPhilippine Partners

Joint Venture Partners

58.2922.28

7.027.57

2.271.531.03

GPC (Operator)Nido PetroleumPhilippine Partners

- Philodril Corp.- Oriental Petroleum &

Linapacan Oil & Gas- Forum Energy- Alcorn Gold- PetroEnergy

SC SC –– 14C Galoc Sub Block Equity %14C Galoc Sub Block Equity %

58.2922.28

7.037.57

2.271.531.03

GPC (Operator)Nido PetroleumPhilippine Partners

- Philodril Corp.- Oriental Petroleum &

Linapacan Oil & Gas- Forum Energy- Alcorn Gold- PetroEnergy

SC SC –– 14C Galoc Sub Block Equity %14C Galoc Sub Block Equity %

The equity structure of SC The equity structure of SC –– 14C Galoc 14C Galoc SubSub--BlockBlock


FAQs


Q: What is the well construction phase?

A: It involves all offshore activities necessary to construct the 2 development wells. This includes both frilling and completions undertaken using the drill ship Energy Searcher.

Q: What are the activities in the Philippines during the well construction phase?

A: The first activity in the Philippines in relation to the drilling phase is the arrival of 2 supply vessels, the Pacific Bronze and Normand Jarl at ATI Terminal, Batangas. This terminal will be used as GPC’s supply base. These vessels will primarily handle supply runs to and from the drill ship.

The next activity will be arrival of the drill ship Energy Searcher in the Galoc Field. Drilling and construction of wells will commence as soon as the ship is anchored.

2 horizontal wells and a pilot hole will be drilled via batch drilling. Completion is expected late December 2007.

The drilling operations will be supported by the 2 supply vessels, helicopter services from CHC Philippines, and logistics support from Logistics Marketing Philippines, Inc.

Sidetrack of Galoc3

Well

Arrival of Drill Ship

Completion of Wells

&Running of

Trees

Arrival of Supply Vessels

Set-up logistics

base at ATI TerminalBatangas

Spud of Galoc3Well

Pilot Hole&

Sidetrack of Galoc4

Well

Anchor at Galoc Fieldwith support from Supply

Vessels

Rig Left Field

Departure of Supply Vessels

1st wk Oct 2nd wk Oct 2nd wk Oct 4th wk Oct 3rd wk Nov 2nd wk Dec 3rd wk Dec 4th wk Dec

Well Construction with the following support:

Logistics – to be provided by LOMARLogistics Base – ATI Batangas

Helicopter - CHCSupply Vessels – Pacific Bronze & Normand Jarl


CHC Heliport, Manila CHC Helicopter

ATI Supply BaseBatangas

Support Boat –Pacific Bronze

Support Boat –Normand Jarl

Batangas Galoc Field, Offshore Palawan

Drill Ship – Energy SearcherGaloc Field, Offshore Palawan


Q: What is the drilling process for the 2 Galoc horizontal wells?

A: GPC will embark on a batch well construction program to efficiently utilize specialized equipment and personnel. The step-by-step process is:

1 Drill Galoc 3 ‘top hole’ to ~950m 6 days

2 Drill Galoc 4 ‘top hole to ~950m 7 days

3 Drill ‘Pilot Hole’ appraisal well; core 54m of reservoir, log and collect material samples

9 days

4 Pull back ‘Pilot Hole’; drill and complete Galoc 4 horizontal production well

22 days

5 Drill and complete Galoc 3 horizontal production well

20 days

6 Install subsea trees and conduct preliminary production test of Galoc 3 & 4 wells

13 days

Est.Time

Well Locations

Water Depth 290m

Galoc-3 Well

Drill Ship

Galoc-4 Well Pilot Hole

1 2

34

5

6

Batch Well Construction Program

Galoc-4

Pilot Hole

Galoc-3


Q: What is the likelihood of an oil spill reaching landfall?

A: The likelihood of an oil spill reaching landfall from Galoc Field operations is very low. The Galoc Field is more than 50 km to nearest landfall. Based on the Oil Spill Trajectory Modeling and Oil Spill Risk Assessment conducted by GPC, the probabilities of a significant oil spill occurrence reaching landfall using applicable statistics from the Gulf of Mexico are:

During drilling: 1 in 11,765 years

During operations: 1 in 2,000 years

BUSUANGA ISLAND

CULIONISLAND

LINAPACANISLAND

Malampaya

Nido Oilfield

Matinloc Oilfield

Galoc Field 50 km

GALOC FIELD LOCATION

Over 50 km away from nearest land

51 km NNE of Malampaya Platform

60 km NNE of Matinloc Oil Platform

113 km NNE of Nido Oil Platform

Galoc Field Location


Q: What preventive measures are in place to avoid the risk of an oil spill?

A: GPC has designed its activities to minimize the possibility of accidental discharge of crude oil to the environment.

Technology. Galoc wells and production facilities will be equipped with fail-close valves; these ensure containment of oil should there be any failure in the process system.

Security. Establishment of a restricted zone, an altitude of 500m and a 3-km radius from the location of Galoc Wells, together the Philippine Coast Guard, Air Transport Office and Joint Task Force Malampaya.

Organization. Development of an Emergency Organization Structure to implement GPC’s Oil Spill Contingency Plan and Emergency Plan, and ensure that training and emergency drills will be undertaken on board all vessels and GPC offices.

GPC Emergency Organization Structure

GPCCMT LEADER

CMT Finance &

Admin

CMTInformation Coordinator

CMTExternal Affairs

CMTLegal &

Insurance

GPCEST LEADER

Driling Superintendent

ESTPlanning

Coordinator

ESTInformation Coordinator

ESTMaterials & Logistics

ESTOperations Coordinator

GPC OffshoreMaterials & Logistics

Third Party Contractors

SVMaster #2

Onsite ERT Members

SVMaster #1

GPC Onsite Representative

JD MODU PIC

ERTLEADER

RelevantGovernmentAuthorities

CEPART

Philippines Coast Guard

Oil Industry Mutual Aid Resources

JV PartnersGPC BoardDOE

GPCCMT LEADER

CMT Finance &

Admin

CMTInformation Coordinator

CMTExternal Affairs

CMTLegal &

Insurance

GPCEST LEADER

Driling Superintendent

ESTPlanning

Coordinator

ESTInformation Coordinator

ESTMaterials & Logistics

ESTOperations Coordinator

GPC OffshoreMaterials & Logistics

Third Party Contractors

SVMaster #2

Onsite ERT Members

SVMaster #1

GPC Onsite Representative

JD MODU PIC

ERTLEADER

RelevantGovernmentAuthorities

CEPART

Philippines Coast Guard

Oil Industry Mutual Aid Resources

JV PartnersGPC BoardDOE

Abbreviations

DOE – Department of Energy

CMT – Crisis Management Team

EST – Emergency Support Team

ERT – Emergency Response Team

MODU – Mobile Offshore Drilling Unit

PIC – Person In-Charge

SV – Supply Vessel

CEPART /Local Disaster Coordinating

Council


Q: Are there measures in place to mitigate an oil spill?

A: GPC has an Oil Spill Contingency Plan in place. The following diagram summarizes the process that will be involved to ensure that any oil spill incident is properly managed.

SITE ERT Responsible For:Health and safety of all persons involved in a responseSpill monitoring and/or overall operational site responseClassifying the initial Tier of the spill/responsePoordinating all necessary local resources for MODU, Vessel orFacility responseNotifying and communicating directly with the GPC ESTERT may be supplemented by specialists as required

OIL SPILLINCIDENT

Observeron MODU

Observeron Vessel

Reports spill toVessel Master

(Takes initial control forVessel Spill)

Offshore IncidentController Role Initiated

GPC ESTL Notified

PIC/DSV NotifiedInitial ERT Site

Response Initiated InAccordance with GPC

OSCP

ERT to MonitorSpill and Site

Response

TIER 1:TIER 1 spills typically do not requireexternal assistance and can usuallybe controlled using facility resources.

Minor spills >0.5-70 bbls or 10m3Spill source isolatedEST to be notified but may not becalled outOffshore Incident Contro ller roleinitiatedStandard GPC incident reportingContain spill substanceClean up spilt oil - ORMonitor spill direction and degradation

TIER 2:TIER 2 spills typically require externalassistance from the ERG and mayrequire national resources:

Tier 2 spills >7,000 bbls or up to1,000m3ESTL to notify CMT of escalation toTier 2 spillERT Incident Controller/ESTL to notifyDOE, PCG and CEPART of spillstatusDOE/PCG to assume Lead ResponseAgency roleGPC to respond in accordance withDOE/PCG direction

TIER 3:TIER 3 spills are beyond facili ty andGPC resources and may requireadditional international externalassistance:

Tier 3 (major) spil ls >1,000m3Blow out with Tier 3 potentialESTL to update DOE, PCG andCEPART of spill statusGPC to respond in accordance withDOE/PCG direction

GPC CMT Responsible For:Confirming Tier of spil l and initial responseProviding EST with Strategic response supportLiaising with JVP and interface as appropriateCoordinating to responses to external affairs issues

ERT liaises with ESTL who liaises with CMT Leader toadvise and/or update of level of incident responseinitiated and potential support resources required

GPC EST Responsible For:Confirming Tier of spil l and initial responseProviding ERT with Tactical response supportSupporting EST OSR Team and DOE/PCG/CEPARTLiaising with CMT and providng external affairs updatesLiaising with authorities and stakeholders

Oil Spill Response Pathway

Abbreviations

OSCP – Oil Spill Contingency Plan

PCG – Philippine Coast Guard

DSV – Drilling Supervisor

ESTL – Emergency Support Team Leader

JVP – Joint Venture Partners


Q: What is the production capacity of the FPSO? What are its specifications?

A: The production capacity of the FPSO, Rubicon Intrepid, is 25,000 barrels per day. It is a panamax with a capacity to store 400,000 barrels of oil and is located in the field using a combination of dynamic positioning assistance and a disconnectible mooring system allowing it to disconnect and sail away to safety during bad weather conditions.

Production Facility Onboard the FPSO –Rubicon Intrepid

Rubicon Intrepid


Petroleum Reference


Sandstone Turbidite

Formed when river deposited debris collects on a continental shelf sea floor until it becomes unstable and slides down the continental slope, like an underwater landslide.

Channel fairway is formed, containing numerous individual channels.

Seismic Survey (Seismology)

Creating shock waves that pass through hidden rock layers and interpreting the waves that are reflected back to the surface.

The shock waves travel beneath the surface of the Earth and are reflected back by the various rock layers. The reflections travel at different speeds depending upon the type or density of rock layers through which they must pass. The reflections of the shock waves are detected by sensitive microphones or vibration detectors – hydrophones.

Source: www.howstuffworks.com


How Oil is Formed

Oil is a fossil fuel formed from the remains of tiny plants and animals (plankton) that died in ancient seas between 10 million and 600 million years ago. After the organisms died, they sank into the sand and mud at the bottom of the sea. Over the years, the organisms decayed in the sedimentary layers. In these layers, there was little or no oxygen present. So microorganisms broke the remains into carbon-rich compounds that formed organic layers. The organic material mixed with the sediments, forming fine-grained shale, or source rock. As new sedimentary layers were deposited, they exerted intense pressure and heat on the source rock. The heat and pressure distilled the organic material into crude oil and natural gas. The oil flowed from the source rock and accumulated in thicker, more porous limestone or sandstone, called reservoir rock. Movements in the Earth trapped the oil and natural gas in the reservoir rocks between layers of impermeable rock, or cap rock, such as granite or marble.

Source: www.howstuffworks.com

first new oil field development in 15 years set to …

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