Nido extends SC54A suspension till 2020 on force majeure grounds
Nido Petroleum, recently delisted from the ASX, following the acquisition by BCP Energy Pte. Ltd, has obtained an approval to extend the suspension on activities in its SC54A offshore block in the Philippines.
The Block A of Service Contract 54, located in the shallow waters offshore Palawan, contains the undeveloped Yakal and Tindalo Oil Fields. Nido as the operator of the SC 54A Joint Venture unsuccessfully sought to develop the Tindalo Oil Field in 2010. The project was abandoned in early 2011 as it was not commercial.
During the third quarter of 2014 Nido was granted a three-year moratorium with respect to Service Contract 54. The moratorium period extended from 5 August 2014 to August 5, 2017 to allow for sufficient time to study the sub-commercial areas and other areas of interest within the license and to review commercialisation options.
The moratorium deadline has now passed, however, HALO, a partner in Service Contract SC54A with a 15 percent stake, said on Wednesday it had been informed by the operator – Nido – that the approval has been received from the Philippines Department of Energy for a further three year suspension to the license exploration period.
According to HALO, the extension has been approved as as a result of Force Majeure in respect of the West Philippines Sea dispute, a territorial dispute in the South China Sea which is the subject of international arbitration.
The suspension now runs until August 5, 2020, unless the dispute is settled before that time. No activity beyond care and maintenance is expected on the license for the foreseeable future, HALO said.
To remind, Nido was on the verge of selling the SC54A assets to Colossal, however the deal fell through in 2014 after the failure of the parties to secure relevant Joint Venture and Government approvals.
Offshore Energy Today Staff