Australia-based Nido Petroleum Ltd., now led by Thai refiner Bangchack Petroleum, is shopping around for Southeast Asian assets as it aims to expand its oil output fivefold amid uncertainty brought on by weak oil prices.
In a report to regulators, Nido Petroleum said it aimed to expand production to 20,000 barrels per day in the next three years from the current level of just under 4,000 barrels per day.
“The company is continuing to consider commercial opportunities in the South-East Asia region with a view to augmenting its portfolio of exploration, development and, in particular, production assets,” chair William Bloking said.
Bloking said the company considered the current low-price environment in the oil industry as an opportunity to expand.
His position echoes that of industry analysts who say that the oil price decline, much of which took place in the second half of 2014, has pulled down exploration costs as well.
“Notwithstanding the negative impact [of oil price declines] on our cash flow for 2015, we remain positive about the macro-economic outlook and prospects for the company,” he said.
Nido has already completed what it calls the “first step” toward reaching its production expansion target: Acquiring an additional 33 percent in the oil producing Galoc field off Palawan.
The sale and purchase agreement was completed with Otto Energy Ltd. in December 2014 for the acquisition of an additional 33-percent participating interest in the Galoc oil field to raise its stake to 55.8 percent.
Upon completion of the deal in February 2015, Nido’s daily production has reached just under 4,000 barrels per day.