Matahio Energy has completed on the acquisition of two legal entities, the first being NPG Pty Ltd, which own a 78.8% operated interest in the producing Galoc field, situated 60km offshore Palawan in the Republic of the Philippines. In addition, Matahio has also acquired a legal entity that wholly owns the FPSO Intrepid Balanghai, which is currently stationed on the Galoc field. The sale and purchase agreement between the parties was signed in March 2022.
- Galoc is an established, well understood, field, which has produced over 24 MM bbls to date since first oil in 2008.
- Matahio is adding 1.8 MM bbl 2P reserves (Net, effective date 1st January 2023) and net production of 1,200 bopd. At prevailing oil prices and contemporary OPEX rates, the Galoc field is expected to generate positive cash flow until 2028. EBITDA for the twelve months to June 2022, from 78.8% interest in Galoc is 16.9 MM USD.
- Matahio has identified other prospects within the service contract, which can be tied back to the FPSO Intrepid Balanghai.
- The transaction also includes full technical and operational teams, based in the Philippines and Kuala Lumpur, who have delivered strong HSE and production performance as well as significant cost optimization in recent years.
- The FPSO Intrepid Balanghai is a 480 kbbls storage FPSO, which has been in operation since 2008.
- FPSO Intrepid Balanghai, which is CLASS certified until May 2026, is considered an important piece of infrastructure within the Philippines. Matahio believes there are substantial commercial opportunities for future re-deployment of the FPSO, specifically in unlocking stranded assets in the Philippines or elsewhere in SE Asia.
- Future field abandonment liabilities are significantly funded via the Service Contract mandated escrow fund.
Dr Wai-Lid Wong, CEO of Matahio Energy, says, “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. This cash flow will be used to fund other acquisitions and organic growth opportunities in the Philippines and across the region. Ownership of the FPSO Intrepid Balanghai adds further scope to manage Galoc’s late-life costs and in the future unlock currently stranded fields.
“Matahio and NPG’s management and technical teams are very familiar with both the FPSO Intrepid Balanghai and the Galoc reservoir, demonstrating a strong track record in production and cost optimisation; we expect this to continue under formal Matahio ownership. Matahio’s team have always found the Philippines to be a collaborative and supportive environment; we are excited to build on our relationship with the Galoc’s Filipino Joint Venture Partners and the Department of Energy. We are confident we can work together to advance the energy industry in the Philippines.”