Nido Petroleum eyes new searches in Palawan

Nido Petroleum Philippines plans to launch new searches for oil and gas in offshore northwest Palawan, with the group allotting at least $17 million in capital expenditures.

Based on documents at the Department of Environment and Natural Resources (DENR), the local unit of Australian energy firm Sacgasco Ltd. is eyeing to implement a commercial extraction of gas in Service Contract (SC) 54.

The company has been an aggressive player in the local petroleum sector, as it undertook several exploration activities in the Palawan Basin in 2006 and 2007.

This area has hosted 11 commercial oil and gas fields, the largest of which is the Malampaya Gas Field.

Currently, the SC 54 concession area has three discoveries dubbed Nido, Tindalo and Yakal.

Another prospect, dubbed Nandino, is on the group’s sights as this provides “a high-impact exploration opportunity.” Nido Petroleum said the area was located higher along the same geological structure from the Yakal and Tindalo discoveries.

For this round of proposed exploration activities, Nido Petroleum said it would cover the drilling of the Tindalo-2 well. It also targets to drill at least one appraisal or exploration well.

“If successful, [the] well will be put on extended well test, followed by production,” the document read.

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If successful, Nido Petroleum said a “tie-in” of the three other fields would be pursued.

These two well developments would require an investment of $17 million. Spending for the exploration success, meanwhile, would reach $8 million for one well.

According to the DENR, it will hold in January a public hearing on the project’s environmental impact.