Nido Petroleum has made an offer to acquire Otto Energy’s 33% working interest in the Galoc oil field in the Philippines for $108m.

Galoc Production Company WLL holds the Otto’s interest in the Galoc oil field, which is situated 60km north-west of Palawan under the Philippines Department of Energy (DOE) service contract 14C1.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The oil field was discovered in 1981 and production started in October 2008.

The water depth ranges between 290m and 400m at the Galoc field with oil located in a turbidite sandstone reservoir at depth of approximately 2,100m below the sea surface.

"Nido’s increased participating interest and appointment as operator will put the company in a controlling position as the joint venture moves forward towards a further potential expansion of the Galoc oil field."

Nido plans to fund the acquisition via a combination of existing cash reserves and debt.

See Also:

The company’s major shareholder, Bangchak Petroleum has committed to provide a revolving debt facility of $120m.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nido’s stake in the Galoc oil field will increase to 55.88% if its offer is successful. The company will also assume operatorship of the project.

The transaction will increase Nido’s production base to more than 4,000 barrels of oil per day.

Nido Petroleum managing director Philip Byrne said: "Acquiring Otto’s stake in Galoc is a logical growth opportunity for Nido and one that fits neatly with the strategy Bangchak communicated upon taking majority ownership of the company earlier this year.

"Nido’s increased participating interest and appointment as operator will also put the company in a controlling position as the joint venture moves forward towards a further potential expansion of the Galoc oil field."

Nido owns a 22.88% working interest in the Galoc oil field and also holds significant acreage in the north west Palawan, the Penyu and west Natuna basins in Indonesia.

Energy