Nido Fails to Secure Rig Due to High Mobilisation Rates (Philippines)

Nido Petroleum Philippines Pty Ltd as Technical Operator of Service Contract 63, on behalf of the SC 63 Joint Venture Partners has announced that the JV has been unable to secure a rig on acceptable commercial terms in order to meet the existing Sub-Phase 2b expiry date.

One of the key issues for the Joint Venture was the high mobilization/demobilization charges quoted to bring a drilling unit into the Philippines for a one well programme in the latter part of 2012. It has been estimated that these charges would have added approximately US$6 million to the cost of the well.

In these circumstances the SC 63 Joint Venture sought, and has been granted, an extension from the Philippines’ Department of Energy (DOE) of the current Sub-Phase 2b for a period of twelve (12) months from 24 November 2012 to 24 November 2013.

Phil Byrne Managing Director of Nido stated “This extension of Sub-Phase 2b will enable the Joint Venture to coordinate the SC 63 programme with other drilling operations being planned in the NW Palawan Basin during 2013 and will allow the Joint Venture to beneficially share the costs of mobilization of a drilling rig and allow the Joint Venture Partners to allocate these savings to additional exploration activities.”

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Press Release, August 30, 2012