Aussie firm gets extension on Palawan drilling permit

Australian firm Nido Petroleum Ltd. has been given additional time by the Philippine government to assess the results of previous studies and drillings conducted within Service Contract 54 in offshore northwest Palawan.

The one-year extension given to Nido Petroleum will allow the company to develop and implement a strategy for the two sub-blocks within the service contract, namely SC 54A and 54B.

SC 54A refers to the shallow water development area containing the Yakal and Tindalo discoveries while SC 54B covers the deeper water exploration area containing the large Gindara prospect along with several other attractive exploration targets.

In a regulatory filing, Nido Petroleum chief executive JV Emmanuel de Dios explained that for sub-block SC 54A, the 12-month extension would give the joint-venture partners additional time to fully integrate the results of the 3D reprocessing project being undertaken over the greater Nido 1×1, Yakal, Tindalo and North Nido pinnacle reef trend.

“Integration of this work will provide the basis for developing and implementing the forward strategy for the block over the coming months, including high-grading potential drilling targets to meet the well commitment in the succeeding sub-phase, Sub-Phase 7, should the SC 54A joint venture decide to enter into this sub-phase,” De Dios explained.

Nido Petroleum holds a 42.4-percent stake in SC 54A and is the operator of the sub-block. Other stakeholders included Yilgarn Petroleum Philippines Pty Ltd. (30.1 percent), Trafigura Ventures III B.V. (15 percent) and TG World (BVI) Corp. (12.5 percent).

For sub-block SC 54B, the 12-month extension will provide the SC 54B joint venture with additional time to fully integrate the results of the recently drilled Gindara-1 exploration well and the implications of the 187-meter non-commercial hydrocarbon column found on the large Pawikan area.