Australian firm Nido Petroleum Philippines Pty. Ltd., operator of service contract 54 (SC 54) and other areas offshore northwest Palawan, plans to fast-track the development of its contract area using low-cost oil production technologies at a cost of $18.4 million.
SC 54 has a aggregate service contract area of 43,515 hectares located at water depths ranging from 50 meters to 110 meters.
Nido Petroleum said in documents submitted to the Department of Environment and Natural Resources the field has three discoveries including Nido 1×1 discovered in 1979 and Tindalo and Yakal discovered in 2008 and drilled in 2009.
“The high productivity reservoirs and the attractive fiscal terms make these high-value discoveries,” it said.
It said the proposed SC 54 Oil and Gas Production Project will involve drilling the Tindalo-2 well.
“If successful, Tindalo-2 will be put on extended well test, followed by production using a suitable production facility Additional drilling of at least one appraisal/exploration well. If successful, well will be put on extended well test, followed by production,” it said.
Nido Petroleum is a wholly owned subsidiary of Blue Sky Resources Limited, a Canadian oil and gas exploration and production company with projects in Canada and Southeast Asia.
It has 42.4-percent working interest and operatorship over SC 54. Its partners include Yilgar Petroleum Philippines Pty Ltd (30.1 percent), TG World (BVI) Corporation (12.5 percent), and Halo SC 54 B.V. (15 percent).
Nido Petroleum has three service contracts in northwest Palawan including SC 54, SC 14C2 and SC 58. It is designated as the operator in SC 54 and SC 6B.
It has a successful track record in oil and gas exploration, development and production, notably in Nido A and B, Matinloc, Tara and Galoc oil and gas fields.
The Palawan Council for Sustainable Development issued an SEP clearance for the SC 54 on Jan. 25, 2024.
