NDO 0.00% 9.8¢ nido petroleum limited

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    MANILA, Mar 01, 2008 (Asia Pulse Data Source via COMTEX) -- NIDOF | news | PowerRating | PR Charts -- Australia-based oil and gas exploration company Nido Petroleum Ltd. is awaiting arrival of the floating production, storage and offloading (FPSO) vessel that'll take in oil from two wells it drilled in the Philippines' northwest offshore Palawan basin.

    Nido president and country head J.V. Emmanuel de Dios is looking forward to this vessel's arrival soon so production of oil from both wells in the Galoc oilfield can begin in April 2008.

    "We're targeting between 17,000 to 17,500 barrels of oil per day," he said at the Kapihan sa Sulo forum.

    He noted it is still unclear until when the oil reserve can last, though.

    FPSOs serve as floating tanks which the offshore oil and gas industry uses to take in oil or gas produced from platforms so such can be processed and stored until offloaded unto tankers or sent to receivers through pipelines.

    Citing technological limitations, however, De Dios said it is still unclear whether it'll be practical to refine in the country oil sourced from both wells Nido drilled.

    "There are many kinds of crude oil so sometimes, it's more expensive to process this locally," he said.

    If oil produced is marketed locally, he said this will help ensure supply of such commodity in the Philippines which consumed last year an average of 300,000 barrels per day.

    He noted government is also entitled to justified returns from the Galoc project as provided for in Presidential Decree 87.

    Former president Ferdinand Marcos issued on December 31, 1972 PD 87 which states that government may either directly undertake petroleum exploration and production or pursue such activities through service contracts with qualified contractors.

    Aside from oil security and justified returns, however, De Dios believes Galoc project's more important contribution is its help in highlighting petroleum potential of the Philippines.

    "Palawan Basin is very prolific and so is the Sulu Sea," he said.

    He noted studies Nido and Department of Energy conducted in these areas indicate petroleum deposits there.
 
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