Oil exploration schedule extended

THE JOINT VENTURE of Australian firm Nido Petroleum Ltd. and PNOC-Exploration Corp. (PNOC-EC) will proceed next year with drilling of an exploration well in Service Contract (SC) 63 located in waters southwest of Palawan.

This came after the Energy department approved the joint venture’s request to extend the SC 63 work program until 2014, according to Nido’s report to the Australian Securities Exchange.

Nido said: “the Department of Energy has formally confirmed its approval of the extension of the current sub-phase.” The joint venture had sought a 12-month extension of the current sub-phase which lapsed last month. The extension will allow the joint venture to drill in the area until Nov. 23 next year.

Nido, as the operator, said it is “continuing to progress preparation [sic] for the drilling campaign in relation to the Baragatan prospect and is currently finalizing negotiations with a rig contractor on behalf of the SC 63 joint venture.”

“Nido expects to drill the Baragatan prospect in the first half of the 2014,” the report read.

Last month, Nido reported it had already signed a letter of intent with a preferred rig contractor to drill the exploratory well and that a binding agreement could be signed before yearend.

The joint venture has already secured various permits to drill the well. Other equipment like the wellhead and casing are being stored in Nido’s operations base in Batangas, according to the firm.

Nido last May said the joint venture will spend $22-25 million to drill the exploration well.

SC 63 was awarded to the joint venture in November 2006. The petroleum block covers an area of 1,067,000 hectares. Nido and PNOC-EC each hold 50% interest.

Besides SC 63, Nido also holds 22.88% interest in SC 14 or the Galoc oil field located in waters northwest of Palawan. It also owns stake in other exploration areas in the Philippines, which are SC 54A (42.40%); SC 54B (60%); SC 58 (50%); and SC 6B (7.81%) -- all of which are also located in the waters northwest of Palawan. PNOC-EC also holds 19% interest in SC 43 located in Ragay Gulf in Bicol; 97% in SC 47 located offshore Mindoro province; 25% in SC 59 located in waters southwest of Palawan; and 10% in SC 38, 28% in SC 57, and 50% in SC 58 all located in waters northwest of Palawan. -- Claire-Ann Marie C. Feliciano

source: Businessworld