Rick Wilkinson
OGJ Correspondent
MELBOURNE, May 18 -- Nido Petroleum Ltd., Perth, decided to fast-track its planned development of the Tindalo oil discovery in the shallow water of Permit SC54 in the Northwest Palawan basin off the Philippines.
Start of oil production is slated for early 2010.
The development will comprise a jack up rig to complete the already drilled Tindalo-1 wildcat well and produce oil from it into a floating production, storage, and offloading vessel.
Nido plans to reach a final investment decision on the development proposal during the third quarter. Currently the company is confirming key project criteria and capital cost ranges as well as finishing a detailed development plan and moving to secure joint venture and Philippine government approvals.
Nido says the rig-based development option delivers the earliest on-stream date and cash flow position with the lowest-risk capital exposure.
Tindalo is seen as a highly productive pinnacle reef reservoir. The initial development is expected to fund the subsequent development of three further discoveries made in the shallow water parts of SC54. There are also 20 follow-up low-risk exploration prospects.
Nido is operator of the permit with 60% interest. Kairiki Energy has the remaining 40%.
