Manila - The Philippines said Thursday it started extracting oil from its offshore Galoc oil field, a welcome development in the country struggling with high fuel prices. Presidential Executive Secretary Eduardo Ermita described the output in the Galoc oil field off Palawan province, 600 kilometres south-west of Manila, as "light medium crude oil with a potential high yield of light ends such as gasoline."
"The fresh extracts were put onboard a Philippine vessel en route to our local refineries," he said.
President Gloria Macapapagal Arroyo is optimistic that this new development will positively impact on the administration's efforts to reduce the country's annual oil imports of 6 billion dollars, Ermita added.
Galoc is the Philippine's first oil development in more than a decade, significantly boosting the country's oil production. A series of delays repeatedly postponed the field's startup.
Energy officials said the Galoc oil field can produce between 17,000 to 20,000 barrels per day within the first 90 days of operations, accounting for 6 per cent of the daily national demand of 300,000 barrels per day.
The oil field, with a reservoir located 2,200 metres below the sea floor, is being managed and operated by a consortium of foreign and local companies.
Ermita said the Galoc oil field has an estimated lifetime of between three to five years in its present development. He added that further studies and exploration could result in additional yields.
