Otto Energy commits $12M for projects

Manila, Philippines - Australian upstream oil firm Otto Energy Ltd. has programmed several exploration projects for its offshore gas fields in the Philippines.

The energy firm committed to spend more than $12 million for production and exploration projects until September, Otto Energy said in a report.

Specifically, Otto Energy said it scheduled two well developments for next year as its final investment decision for the Galoc Phase 2.

“The Galoc joint venture has pre-invested in the required infrastructure, including wellheads, flowlines and umbilical lines to ensure drilling can occur in 2013,” Otto Energy said.

Otto Energy holds a 33-percent stake in the Service Contract (SC) 14 in offshore Palawan where the Galoc oil and gas field is located.

Since starting commercial operations in 2008, the oil field has produced more than 7.5 million barrels.

Output of the Galoc project attributable to Otto Energy hit 176,354 barrels in the second quarter, resulting in $10.939 million in revenues.

Its operations stopped in December as the project operator installed new lifting equipment that will extend production.

Furthermore, Otto Energy reported that more exploration will be conducted in the maturing Galoc North area next year.

For the 3,320-square kilometer SC 51, the upstream oil firm said it is preparing to drill in the Duhat-2 well in onshore Leyte.

In 2001, the company drilled Duhat-1 wherein oil and gas indications and the presence of an active petroleum system were observed.