GPC Continues Reinstatement of Galoc's Mooring & Riser System

Otto Energy has received an update from the field Operator, Galoc Production Company WLL (GPC), on the status of the reinstatement of the Mooring and Riser System (M&RS) in advance of resuming production at the Galoc Oil Field.

Galoc Field -- Interruption to Production

Reinstatement of the Mooring and Riser System (M&RS) following the weather related disconnection undertaken in late June is continuing.
The M&RS was reorientated and connected to the FPSO in mid July however progress was interrupted due to weather conditions which precluded the necessary subsea operations at that time. Whilst waiting for suitable conditions, the FPSO was disconnected and the M&RS laid down on the seabed all of which was undertaken in accordance with standard operating procedures. Conditions in the Field have improved and, with an acceptable forecast for the coming days, preparations to resume activities in the Field are under way.

The first operation is for the FPSO to reconnect to the M&RS prior to change out the deformed riser section by the construction vessel Rubicon Maverick. Once repairs are completed, the riser element of the M&RS will be reconnected to the FPSO and the full system function tested prior to resuming production operations. The remaining tasks are expected to take 1-2 weeks, subject to any further weather interruptions.

The M&RS and thrusters are key components of the overall FPSO system, which is provided by Rubicon Offshore International under the provisions of an operated lease / service contract. During field shut-ins resulting from problems with the FPSO, neither the FPSO lease rate nor repair costs are payable under the contract.

Production from the field to date is in excess of 2.2 million barrels. The Galoc Joint Venture will continue to monitor field performance and address any further development opportunities.