Otto Energy completes 2nd drilling phase for Galoc dev’t

MANILA, Philippines - Australian firm Otto Energy Ltd. has completed all drilling activities of the second development phase at the Galoc oil field in northwest Palawan.

In a disclosure to the Australian Stock Exchange, Otto said its Ocean Patriot drilling rig has been successfully demobilized, completing all drilling activities of the second phase in the oil field.

“This marks the successful completion of all drilling activities of the Phase 2 development,” the company said.

With the latest development, Otto Energy has commenced installation activities to connect the Galoc-5H and Galoc-6H wells into the FPSO Rubicon Intrepid, an offshore vessel.

 â€œIt is expected that these offshore installation activities will be completed before the end of November 2013, resulting in the first oil being produced from FPSO Rubicon Intrepid,” Otto Energy said.

The Galoc joint venture partners, led by Otto Energy, approved last year the Galoc Phase 2 development and commenced drilling in June 2013. The consortium expects first oil in the fourth quarter of 2014.

Total investment cost for the Galoc Phase 2 project is $188 million, of which Otto’s share is $62 million representing its 33 percent interest.

The Phase 2 development, which has the support of the joint venture, will require the drilling of two subsea wells.

Otto holds a 33 percent direct ownership in the Galoc project through Galoc Production Co. Other partners are Nido Production Ltd., Oriental Petroleum & Minerals Corp., Linapacan Oil Gas & Power Corp., the Philodrill Corp. and Forum Energy Philippines.