DOE gives Nido green light to drill Gindara-1

The Department of Energy has given Nido Petroleum Ltd. the green light to drill for oil in its Gindara-1 project in offshore Palawan next May. In a statement Monday, Nido exploration head Jon Pattillo said the approval "marks another important milestone" for Australia-based oil and gas exploration company. The Gindara-1 project is covered by service contract 54-B whose consortium members include Kairiki Energy Ltd., Shell Philippines Exploration B.V. (SPEX), and Nido's subsidiary Nido Petroleum Philippines Ltd. The project is approximately 50 kms south of the SPEX-led Malampaya oil and gas field, the Philippines' largest natural gas discovery . Nido will now start the logistics planning for its first oil well in Gindara. "This will ensure we're confidently prepared ahead of mobilization of the rig to the Philippines," Pattillo said. Nido Petroleum Philippines expects the drill rig Atwood Falcon to sail from Labuan, Malaysia to offshore Palawan within the first half of May. SPEX "has enhanced our drilling team," Pattillo said, noting that a drill engineer from SPEX who is familiar with the Atwood Falcon will be there to help Nido Petroleum Philippines. Nido Petroleum has commissioned the Atwood Falcon deepwater semi-submersible rig to drill the first well of the Gindara oil project, estimated to contain an “upside potential of one billion barrels." The Atwood Falcon is covered by a rig assignment agreement between Sarawak Shell Berhad/Sabah Shell Petroleum Co. Ltd. and Nido Petroleum Philippines. The operations team will work closely with SPEX to ensure an efficient aviation and logistics support for the Gindara-1 drilling, Pattillo said. — JE/VS, GMA News