MANILA, Philippines - Australian firm Otto Energy Ltd. said it expects first oil flow from the second phase of its Galoc development project in northwest Palawan in the second half of the year.
In a report, Otto Energy said it expects to sustain progress in the second phase of the Galoc project after it secured a $37.4-million financing facility from BNP Paribas to fund drilling activities and other capital expenditures.
Otto Energy, which operates the Galoc field and the majority shareholder of Service Contract 14C, earlier announced that the consortium made its final investment decision to proceed with the second phase of the Galoc field development.
The company also said that implementing the second phase of the Galoc project was consistent with the company’s strategy of building an integrated petroleum company, generating a sustained flow of drilling events, focusing on Southeast Asia and onshore East Africa.
After it starts the drilling program for the second phase, Otto Energy will seek joint venture approval from the government for the northern Galoc exploration program.
The development involves drilling and completion of two subsea wells tied into the existing infrastructure and is targeting to increase production to more than 12,000 barrels of oil per day from the current 5,000 BOPD.
In all, Otto Energy expects to drill as many as five new wells in 2013 as it increases its oil production this year in the oil and gas structures in Palawan and the Visayas.
Aside from the Galoc project in Palawan, Otto Energy also hopes to secure contracts this year for drilling Duhat-2 exploration well in onshore Leyte in mid-2013.
Duhat-2 well, also known as SC 51, is operated by a consortium led by Otto Energy.
Otto Energy owns and operates 80 percent of SC 51. Its partners in the consortium are Trans-Asia Oil and Energy Development Corp., Alcorn Gold Resources Corp. and Petro-energy Resources Corp.
The company also expects to complete the technical evaluation of new 3D covered data in SC 69 in offshore Visayas for oil and gas prospects.