An informed oil source confirmed that the Kuwait Foreign Petroleum Exploration Company (KUFPEC) is in the process of completing the exit process from the Galoc oil production project in the Philippines adding that the company entered into the Galoc production project in the Philippines during fiscal 2012, during which the project achieved losses amounting to $3.128 million.
This brings the total accumulated net losses of the project since its acquisition until the end of fiscal year 2021 to about 105.73 million, or 59% of the capital, reports Al-Jarida daily.
The source said that the procedures for withdrawing from the company’s share in the project, which amounted to 26.8%, came out of the absence of economic benefits, adding that the procedures for the withdrawal process were started at the end of the fiscal 2020, adding that this came based on a decision No. 38/2021 dated 12/14/2021 issued by the company’s board of directors by rescheduling and increasing capital costs by $165,000, including abandonment costs, so that the total approved cost of the project until the end of fiscal year 2021 is about $179.689 million.
The source added that the company has, during the past, re-examined the oil reservoirs and reserves of the project, which showed a decrease in the reservoir pressure with an increase in the water level which led to a decrease in oil reserves, indicating that this project was on the company’s exit list since the past years.
The source pointed out that the company is currently carrying out exit procedures according to the provisions mentioned in the contracts concluded with the operator and the Philippine Ministry of Energy, proving dues and collecting what is approved after the approval of all parties as stipulated in the procedures agreed upon between the operator and all partners.