Australian oil exploration firm Nido Petroleum Philippines Pty. Ltd has been allowed to take more time to study a site northwest Palawan.
Nido Petroleum’s sub-phase 6 work programme for service contract 54, which includes the drilling of one exploration well, has been extended for one year beyond the August 4 deadline, a statement showed.
“The 12-month extension for sub-phase 6 will enable Nido Petroleum to complete the ongoing 2D seismic processing projects over the Lawaan-Libas Prospects in service contract 54A and the Pawikan Lead in service contract 54B, and to fully integrate the results and implications of the new seismic data into the subsurface geological models and prospect maturation,” the firm said.
Nido and its consortium partners have already drilled two wells so far in the area. It closed the Tindalo well in December 29, 2010 due to water intrusion. The Gindara-1 well was abandoned in June 21, 2011 because it was decided the well will not yield commercial quantities of oil.
Nido Petroleum is the operator of service contract 54A with 42.4 percent interest. Other owners are Yilgarn Petroleum Philippines Pty. Ltd with a stake of 30.1 percent; Trafigura Ventures III BV, 15 percent; and TG World Corp., 12.5 percent.
Nido Petroleum has a 60 percent participating interest in service contract 54B and Yilgarn Petroleum Philippines has 40 percent. In January 4, Nido announced that Shell Philippines Exploration B.V. withdrew from the consortium. Before its withdrawal from the consortium, Shell Philippines Exploration had a 45 percent interest while Nido Petroleum had 33 percent and Yilgarn 22 percent.
It is also a member of the Galoc oil field consortium. The firm is expected to participate in the bidding for oil exploration areas 3,4 and 5 in northwest Palawan on July 31.