Nido Petroleum Wins Contract for Area 1 in the Palawan Basin

The Philippines Department of Energy (DOE) has selected Nido (50% equity) and the Philippine National Oil Company (50% equity) as Preferred Bidder for a new Service Contract currently known as Area 1, in the Palawan Basin. The highlights are as follows;

  • Nido partners with Philippine National Oil Company (PNOC);
  • Large 1.056 million hectare block;
  • Contiguous with Nido's existing acreage position;
  • Contains the Aboabo gas discovery (Phillips Petroleum 1980);
  • Increases Nido's gross acreage position in the Philippines by 159%; and
  • Extension of the Miocene (Pagasa Turbudite) Play Fairway.

Senior Geoscientist, Ms. Sharon Tiainen, said "Area 1 is an under-explored part of the Palawan Basin, is contiguous with our existing acreage and benefits from having an existing gas discovery. The Aboabo discovery not only proves the continuation of the hydrocarbon fairway into this area and also demonstrates the presence of effective reservoir and trap."

Head of Exploration, Mr. Paul Quaife, said "We are delighted to have been selected as preferred bidder for this acreage award with PNOC. We gratefully acknowledge our Manila Team in this success. Area 1 will provide significant depth to our Philippine acreage position and is an important part of our exploration strategy in the Palawan Basin."

Nido and PNOC will commence negotiations immediately with the Philippines DOE to finalize Service Contract terms and conditions and the work program.