Malaysia’s Matahio Energy is keen on expanding its operations in Southeast Asia after it acquired a 78.8 percent interest in the Galoc oil field and a floating production storage and offloading (FPSO) unit, both located in Palawan.
Last year, Matahio Energy completed the acquisition of NPG Pty Ltd. which owns a 78.8 percent interest in the producing field as well as of the FPSO unit Inteprid Balanghai stationed in the Galoc field.
“The Galoc field is an important part of Matahio’s growing portfolio. The field’s lifting costs are remarkably low for a late-life offshore field and can provide stable cash flow for many years to come with the abandonment liability significantly mitigated by an existing abandonment fund,” said Wai-Lid Wong, Matahio Energy chief executive officer.
Wong said the cash flow will be used to fund other acquisitions and organic growth opportunities in the Philippines and across the region as its ownership of the FPSO Intrepid Balanghai adds further scope to manage Galoc’s late-life costs and unlock potentials in other fields in the area.
Matahio Energy also said that at prevailing oil prices and contemporary operations expense rates, the Galoc field should continue to generate positive cash flow until 2028.
It added the FPSO Intrepid Balanghai, which is certified until May 2026, is considered an important piece of infrastructure for commercial opportunities in the Philippines and elsewhere in Southeast Asia.
The Galoc field is covered by Service Contract 14C1 located 60 kilometers northwest of Palawan and had been in production since 2008. It recently passed the 24 million stock tank barrels of recovered oil.
Apart from Matahio Energy’s 78.83 percent stake in the Galoc field, other firms include Philodrill Corp.’s 10.18 percent stake, Oriental Petroleum and Minerals Corp.’s 7.79 percent stake; and Forum Energy Philippines Corp.’s 3.2 percent ownership.
