Nido in talks for SC54B farm-out

NIDO Petroleum is in advanced discussions with an unnamed party to farm-in to SC54B in the offshore Palawan Basin, Philippines, which contains the prospective Gindara prospect.

In a market update on Friday, the company, which has been searching for strategic opportunities to farm-out its oil and gas assets, said it was in discussions with a "significant oil company" in relation to its 60%-operated SC54B.

However, the company added that while the discussions were advanced, they were incomplete and there was no guarantee that any final agreement would be reached.

"Furthermore, if any agreement is entered into it will be conditional upon any necessary third party consents and approvals from the Department of Energy in the Philippines," the company said.

While the company did not disclose the interested party, it is known that BHP Billiton, ExxonMobil and Shell operate in the area.

BHP is working with Otto Energy in SC55 which is also in the Palawan Basin while ExxonMobil has recently completed a year-long drilling campaign in the Sulu Sea.

Shell operates the giant Malampaya field, 30 kilometres the north of the Gindara prospect in SC54B.

Gindara lies on trend to Malampaya and has an estimated oil in-place resource of 634 million barrels with an unrisked upside of about 1 billion barrels.

The prospect is the highest-ranked drilling candidate in the block and Nido is progressing plans to drill within the first half of next year. Long lead items for the campaign are being acquired and a search for drill rigs has begun. contacted Nido, but the company did not respond by the time of publication.

Nido is operator and holds a 60% interest in SC54B while Kairiki Energy has the remaining 40%.

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