The Philippines Department of Energy (DoE) has announced that production is set to begin at the Galoc oil field next week as the country moves towards energy autarky.

Speaking at a news conference in the city of Malacanang, department secretary Angelo Reyes confirmed that the $120 million oil field, which is located in the Palawan district, is expected to produce between 17,000 and 20,000 barrels a day, talking total output for the region to 30,000 barrels, equivalent to ten per cent of total demand.

Using oil from the Galoc field will cut back on insurance and transportation costs associated with importing foreign supplies and would therefore give the Philippines people, who have been suffering on the back of soaring energy prices, a welcome break.

"The Philippines will earn from the sales of crude oil, which will be benchmarked at international prices and with domestic refineries being given the first priority so rather than being exported, it will be consumed locally," Mr Reyes said.

At the same time the secretary also announced that Exxon Mobil is due to formalise its plans to further its oil and gas exploration programmes within the Phillipines with the countrty's president at the end of the week.

The world's largest energy company is believed to be interested in reserves in the Sulu Sea, having reached an exploration agreement with the local Mitra Energy Limited.