Nido Petroleum allotting $72M in offshore explorations

Nido Petroleum Philippines Pt. Ltd. will be spending $72 million for its exploration activities in its two service contracts (SC) in the Palawan Basin. 

The two contracts, SC 6B covering the Caldao Oil Field and SC 54 located in the Northwest Palawan Basin were approved to conduct site survey activities by the DOE. 

In a virtual press conference on Wednesday, Energy undersecretary Alessandro Sales said that the drilling of the appraisal well under SC 6B will cost around $16 million, while the well to be drilled under SC 54 will also have a budget of $16 million. 

Also under SC 6B, an additional $40 million will be allotted for an extended production test. Sales said that this will test the flow rate for a certain period in order to determine how to optimize future production in the exploration site and determine a way to install the permanent production facilities. 

Nido Petroleum eyes one exploration well and one appraisal well under SC 6B in the first quarter of 2023. 

The Caldao Oil Field is seen to bring in recoverable volumes of five to six million barrels of oil. 

Earlier this week, President Ferdinand Marcos Jr. said that the approval of SC 6B’s site survey sends the signal of the government’s intent to maximize indigenous resources, adding that it has attracted strong interest from foreign investors in the Philippines. 

Nido Petroleum is the Australian unit of Sacgasco Ltd.