The host team faces Auckland and North Harbour in its pool, along with Buller, and will face a hard task trying to make it into the top half of the tournament for the second day.
Last year, Otago made a slow start at the tournament losing two of its first three games and did not make it through to the top half of the draw.
But it picked up on Sunday and eventually finished in ninth position, winning all its games on the second day.
Coach Mike Moeahu is back for another year and said he was pleased with the fitness of his team and the attitude.
The side had travelled to Burnham for a tournament last month when it played South Canterbury and a couple of composite teams.
It had a camp in Cromwell last weekend to finalise the team and sort out tactics.
Moeahu said a few of the players were a bit slow out of the blocks last year, being new to the tournament, but he hoped that would not be the case this weekend.
With Canterbury not sending a team to the tournament it was hard to get games against quality opposition in the South Island.
Otago will take on Auckland first on Saturday, before playing Buller, and will then play the final game of the day against North Harbour.
The Otago team will be captained by Paul Grant, who has played for New Zealand in the past two IRB world sevens events.
Block-busting winger Karne Hesketh is back in the side after missing last year, while first five-eighth Glenn Dickson has made the team but with his size will be playing in the forwards.
Speed will be provided by Jeremy Cave and Marshall Suckling.
Halfback Johnny Legg, who played a few minutes for Otago in the 15s game before ending his season with an ankle injury, is in the side, and his speed and pass should be an asset.
Super 14 players were not available for selection.
Moeahu said the sevens game had got more physical over the years but fitness and tactics were still important.
Teams from the North Island have traditionally dominated the tournament, with North Harbour beating Counties- Manukau in the final last year.
Bay of Plenty looms as a big contender, having won two tournaments in the North Island before Christmas.
Otago Country will not be appearing this weekend, after playing the past two years.
Otago squad For national sevens
Otago: Paul Grant (captain), Karne Hesketh (vice-captain), Brad Cameron, Marshall Suckling, Shannon Young, Glenn Dickson, Johnny Legg, Peter Breen, Jeremy Cave, Julius Glasson, Adam Gavegan, Fraser Lau.
