SINGAPORE (Reuters) - Shares in Singapore-based oilfield services firm Otto Marine Ltd fell as much as 9.5 per cent on Monday morning, after a creditor filed a court application to wind up the company over about $1.57 million in debt.

Otto Marine's share price dropped on Monday to a two-week low of 3.8 cents, in its sharpest daily decline in over a month.

The slump in crude oil prices since mid-2014 has put pressure on oilfield services companies, which face grim competition as oil producers cut exploration and production costs, resulting in fewer projects and lower rates.

"The company is not disputing the debt," Otto Marine said in a statement on Saturday, adding that it was in negotiations with the creditor's solicitors to reach a settlement. It did not name the creditor.

Otto Marine owns and operates a fleet of 59 offshore support vessels, and has a shipyard in Batam, Indonesia, its annual report says. It has a market value of about $165 million.

The company said a hearing will take place in the Singapore High Court on May 15.