Otto Energy has signed definitive agreements to increase its stake in the Galoc oilfield, offshore the Philippines, from an indirect 18.78% to a direct 33% under a service contract.

The company has also acquired a 68.62% interest in the Galoc Production Company (GPC), operator of the Galoc field, from Vitol Group, increasing its interest in GPC from 31.38% to 100%.

The acquisition will be funded by Otto’s existing cash reserves and the deal is scheduled to be completed before 30 September 2011.

The transaction is subject to relevant government approvals.