Energy dep’t gives SC 54 contractors more time to explore

THE ENERGY department has granted a suspension of obligations to contractors of Service Contract (SC) northwest of Palawan to give participants more time to study the resource area.

Operator Nido Petroleum Ltd. said in a report to the Australian Securities Exchange on Friday that the department confirmed the approval of the moratorium period covering SC 54 Blocks A and B.

The moratorium period -- which starts from Aug. 5 of this year until Aug. 5, 2017 -- “provides both the Block A and Block B Joint Ventures sufficient time to study the presently sub-commercial areas and other areas of interest within these Blocks...”

Further information on the company’s obligation under the contract was not immediately available.

Based on its Web site, Nido operates both blocks of SC 54. The Australian oil and gas firm has 42.4% interest in Block A and 60% in Block B.

Covering 88,000 hectares, SC 54A is situated in shallow waters. Nido is looking for divestment opportunities in relation to the contract.

On the other hand, SC 54B encompasses 316,000 hectares. Further technical work is needed but Nido noted that “there is no firm work commitment related to Block B.”

Nido also holds a 22.88% stake in Service Contract 14C1, which covers the Galoc oil field also northwest of Palawan. -- Claire-Ann Marie C. Feliciano

source:  Businessworld