MANILA, Philippines - Australia-based Otto Energy continues to seek partners to participate in the drilling of the Hawkeye well off Palawan which has estimated reserves of 480 million barrels of oil.
Otto said it is looking for non-operator partners to take up to 40 percent working interest in the project.
“Otto is several months into a farm-out process to introduce a new joint venture partner to participate in the drilling of Hawkeye-1. Otto is working with a number of non-operator partners to take between 30-40 percent working interest and participate in the drilling of Hawkeye-1. Otto will operate the drilling of Hawkeye-1,” Otto said in its latest quarterly report.
Otto earlier executed binding agreements with BHP Billiton Philippines to terminate their farm-out agreement in Service Contract 55 (SC 55) offshore Palawan.
Under the agreement, BHPBP re-assigned a 60 percent working interest to Otto, bringing Otto’s working interest to 93.18 percent, a move approved by the Department of Energy in March last year.
For the Hawkeye well, Otto has commenced drilling planning preparations, including well design, planning studies and procurement reviews. Furthermore, Otto has also already invited expressions of interest from drilling rig owners to determine availability of drilling units.
PNOC-EC, the exploration arm of Philippine National Oil Co. (PNOC), is also partnering with Otto for a 15 percent working interest in the service contract.
SC 55 is located near the Malampaya gas field in offshore Palawan and includes the Cinco well.
Otto CEO Matthew Allen said the company is pleased to partner with PNOC-EC given its track record in the oil and gas industry in the country.
“Otto Energy is very pleased to welcome a partner of the quality of PNOC Exploration Co. into SC 55. PNOC-EC brings substantial experience in the Philippines oil and gas industry to the SC 55 joint venture,” Allen said.
He said the company looks forward to progressing the high impact exploration program with the Hawkeye-1 well in SC 55 with PNOC-EC and its joint venture partners.
“Otto notes that the cost of this upcoming exploration program is likely to be considerably reduced as weaker oil prices impact on rig and contractor rates,” he said.
In terms of potential resource, the DOE estimates that SC 55 has some 2.2 trillion cubic feet of gas.