Nido Installs a New Retrieval Line for Mooring Galoc FPSO

Nido Petroleum has provided an update on its operational activities offshore Palawan Basin in the Philippines.

As reported on July 2, 2008, in preperation for the Service Contract 54 2008 drilling campaign, a site survey program commenced on July 2, 2008.   Good progress is being made, with the digital survey of the Yakal and Tindalo sites now completed, and fast-track data processing results to follow. With favorable weather conditions, the remaining surveys in the shallow water and Gindara site are scheduled to be completed by the beginning of August 2008. TL Geosciences has been contracted to conduct the soil boring and analysis of four high-graded sites in the shallow water and the Gindara prospect as the second phase of the survey program, prior to the arrival of the drilling rig.  This is scheduled to commence during the first week of August 2008.

As reported last week, reconnection procedures were initiated following the passage of Typhoon Fengshen. One of the first steps in this procedure is to bring the retrieval line on board the FPSO in order to raise the mooring and riser from the seabed ready for hook-up.

After passage of the Typhoon, the retrieval line was found to have been damaged irreparably. The current operation underway is to attach a new retrieval line to the mooring system. Once the new retrieval line is installed, the mooring and riser system will be raised to surface and connected to the FPSO. This will be followed by a full systems safety and integrity check prior to first oil production. If all goes well, and the mooring system integrity check is successful, first oil is expected in approximately one week from now.


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