Otto bloc to drill 4 wells this year

Australian firm Otto Energy Ltd. and its partners are poised to drill four wells within the year, pushing their respective exploration and development activities in Leyte and the Palawan basin.

In a regulatory filing, Otto Energy said two subsea wells would be drilled at the Galoc oil field—part of the Phase II development by the joint venture controlling Service Contract 14C.

The consortium operating SC 55 off Palawan, led by BHP Billiton, is still targeting to drill an exploration well before the end of its current subphase in August, while the group that operates the SC 51 license in Leyte hopes to drill an exploration well by the third quarter this year.

According to Otto Energy, development drilling at the Galoc oil field is scheduled to start by June 2013, with the first oil expected in the fourth quarter of the year. The two planned subsea wells may increase production to more than 12,000 barrels of oil per day (bopd) from the current average of 4,750 bopd.

During the first quarter this year, total production from the Galoc oil field stood at 434,801 barrels at a daily average of 4,831 barrels.

The Galoc joint venture was able to ship its 30th cargo of 365,621 barrels last March to a South Korean refinery. The shipment was priced at $111.953 a barrel. Its 31st cargo has already been sold and scheduled for delivery late this month.

Also, the SC55 consortium, according to Otto Energy, is currently preparing for the drilling of the Cinco-1 exploration well.

Otto Energy said all critical permits have been obtained, with the exception of the Strategic Environmental Plan Clearance from the Provincial Council for Sustainable Development, which was submitted to the Palawan provincial board in August 2012.

The Palawan provincial board has requested SC 55 operator BHP Billiton to submit a comprehensive socioeconomic development program for Palawan prior to releasing an endorsement of the clearance.

The SC 55 consortium is composed of BHP Billiton, which holds a 60-percent interest; Otto Energy Ltd. with 33.18 percent, and Trans-Asia Oil and Energy Development Corp. with 6.82 percent.