Nido Petroleum says all systems go for oil drilling in May

The Philippine subsidiary of an Australian gas exploration company has expressed confidence that its planned drilling in Gindara, Palawan, will begin in May. Nido Petroleum Philippines Ltd., a subsidiary of the Australian firm Nido Petroleum Ltd., said the Gindara-1 well will likely contain “an upside potential of one billion barrels." The Gindara-1 project is the first drilling project under the service contract (SC) 54-B joint venture. It also the first well under Nido Petroleum’s planned five-well program. Nido Petroleum holds a 33-percent stake in SC 54-B. It shares the consortium with Kariki Energy Ltd. (formerly Yilgarn Petroleum), which owns 22 percent, and Shell Philippines Exploration B.V., with 45 percent. The operators anticipate the rig to move from Labuan, Malaysia to the location of Gindara-1 project in the first or second week of May. Nido Petroleum exploration head Jon Pattillo said, “The rig is well-suited to operate offshore Philippines, having drilled two deep-water wells last year for Shell in the Philippines." The Gindara prospect lies about 50 kilometers south of the largest oil discovery made in the Philippines to date, the Malampaya gas field under SC 38. The Energy Department considers the Nido Petroleum project — as well as the exploratory drilling programs by four other companies this year — as a positive step towards ensuring the country’s energy security. — PE/JE, GMA News