NIDO Petroleum Ltd. is scouting for new oil exploration, development and production opportunities in the Philippines this year.
Nido Managing Director Philip Byrne said Bangchak Petroleum Public Company Ltd., which has an 81.41 percent interest in Nido, is also interested in expanding Asia wide.
The company holds significant acreage in the highly prospective North West Palawan Basin in the Philippines and the Penyu and West Natuna basins in Indonesia.
Nido recently bought Otto Energy Ltd.’s shares in Galoc Production Company WLL (GPC) for $108-million..
GPC owns the 33 percent interest in the Service Contract (SC) 14C1, located in waters northwest of Palawan, which covers the Galoc oil field.
Byrne said the negotiation and finalization of the sale and purchase agreement with Otto Energy’s interest in Galoc oil field is expected to be completed within two weeks.
He said the company plans to fund the acquisition of Otto Energy’s stake in Galoc oil field through a combination of debt and equity.
Bangchak, Byrne added, has already provided Nido with a revolving loan facility for up to $120 million.
Upon completion, Nido’s interest in SC 14C1 will increase to 55.88 percent from the current 22.88 percent.
Besides SC 14C1, Nido also holds interest in other petroleum assets in the Philippines.
Its contracts under development and production stage include SC 14C2 (22.88 percent); SC 14A (22.49 percent); SC 14B (28.28 percent), which are all located in waters northwest of Palawan.
Nido also has stakes in other exploration assets in the Philippines including 50 percentin SC 63; 42.4 percent in SC 54A; 60 percent in SC 54B; 10 percent in SC 58; 7.81 percent in SC 6B, which are all located offshore Palawan.