Otto Energy ups stake in Galoc oil field offshore Philippines

By Phaedra Friend Troy

Otto Energy has acquired Vitol’s stake in the Galoc oil field, increasing its interest in the producing field from 18.78 to 33 percent and assuming 100 percent control of the operating company.

Otto is paying US $18.7 million for the remaining interest in the Galoc Production Company and for Vitol’s interest in Service Contract 14C, which holds the Galoc field.

Located offshore the Philippines, Galoc produces about 6,800 barrels of oil a day. Project partners recently approved an upgrade to the Galoc FPSO mooring and riser system in an effort to improve uptime on the field and to facilitate a second phase of development, which is scheduled for a final investment decision in early 2012.

“This acquisition represents an attractively priced, low-risk opportunity for Otto to increase its share of revenue from Galoc, as well as to better leverage the expertise within the group through assuming operatorship,” said Matthew Allen, CEO of Otto. “Galoc is a proven producing asset that we know well and that complements our high potential Philippines exploration portfolio.”

Following the acquisition, Otto will serve as operator with 33 percent interest. Project partners will include Risco energy with 26.84 percent, Nido Petroleum with 22.88 percent, The Philodrill Corp. with 7.21 percent, Oriental Petroleum & Minerals with 7.79 percent and Forum Energy Philippines with 2.28 percent.

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