Nido Petroleum Limited has announced that the Galoc Joint Venture has approved the Final Investment Decision (FID) on the Phase II Development of the Galoc oil field in the North West Palawan Basin, offshore Philippines.
Nido’s participation in the FID is subject to completion of certain conditions precedent under its debt facility with Standard Bank, which it is in the process of satisfying.
The Phase II Development involves the drilling of two new horizontal wells tied back to the existing Floating Production, Storage and Offloading facility (FPSO), the ‘Rubicon Intrepid’.
The total field production rates at Galoc are expected to increase from 5,600 barrels of oil per day (bopd) to more than 12,000 bopd following start-up in the second half of 2013. The total project capital expenditure for the Development is forecast at US$188 million. Nido holds a 22.88% interest in the Galoc oil field in Service Contract 14 Block C1 and Nido’s share of the expenditure is forecast at US$43 million.
Nido’s Managing Director, Phil Byrne, said, “The Galoc Phase II Development delivers incremental reserves and extends the field life, and as such, it is a key element of our strategy to maximise value from our producing and development assets in the near term. We are pleased to reach such a significant milestone in advancing the Galoc Phase II Development and look forward to working with the Operator to deliver the project safely, on time and on budget.”
Press Release, September 11, 2012