Galoc Production Company (GPC) reported an update regarding an upgrade of the mooring and riser system for the FPSO Rubicon Intrepid operating at the Galoc field.

The new turret mooring system is designed to substantially increase the reliability and uptime of the FPSO and is a crucial component to enable the Galoc Joint Venture to move ahead with Phase 2 development.

Otto owns 31.38% of GPC, which has a participating interest of 59.84473% in the Galoc field.

Otto Chief Financial Officer and Acting CEO Matthew Allen said, "The upgrade of the FPSO system will substantially improve the uptime of the Galoc field, which is an important revenue-generator for Otto. In addition, it provides a vital platform from which to embark on our planned Phase 2 development of the field, which we expect to approve early next year."

"Engineering work on the new system is already well underway, and we look forward to the upgraded FPSO returning to the Galoc field before the end of 2011."

Tags: Otto Energy Limited