Nido Petroleum Ltd’s (Nido Petroleum) board of directors has resolved to commit the resources of the company to pursuing the development of the Tindalo oil discovery in the Philippines. The Tindalo development, located within the inboard, shallower portion of service contract 54 offshore Philippines, has the capacity to provide a second cashflow stream to Nido Petroleum within the next 12 months. The Nido Petroleum Board has endorsed the first project in the area and will fast-track the Tindalo development utilizing a jack-up rig-based production scenario. Contributing to this decision is the Board’s confidence in the growth of the upstream oil sector in the Philippines. This comes at a time when industry activity in the country continues to increase, short-term prospects for oil prices are improving and long-term sentiment remains positive. Nido Petroleum is seeking to achieve FID in the September quarter of 2009 after the following work programme has been successfully concluded: confirmation of key project criteria including production and capital cost ranges and availability of project services and hardware; finalisation of the detailed Plan of Development; and securing appropriate joint venture and Philippine government approvals. The objective of the Tindalo development is to utilize a jack-up rig to complete the already drilled Tindalo-1 well and produce oil into a floating storage and offtake vessel.
