Philippines
Service Contract 54 (SC 54)
Operator: Nido Petroleum Limited
SC 54 is located in the productive North-West Palawan basin in water depths ranging from 30 metres to 1,100 metres and covers an area of 5,418 km2.
Kairiki acquired its interest in May 2006 by farming into the Permit held by Nido Petroleum Limited. The Joint Venture has access to over 1,000 km2 of 3D seismic data (largely acquired by the JV in 2006-2007) and some 7,500 km of 2D seismic data which has developed the current prospect and leads inventory.
Subsequent to the drilling of the two exploration wells in 2008, Yakal-1 and Tindalo-1 the Joint Venture partners agreed to partition the block into two areas: SC 54 Area A (SC 54A) and SC 54 Area B (SC 54B).
Service Contract 54 Area A (SC 54A)
Operator: Nido Petroleum Limited 42.4% Participating Interest
Joint Venture Partners: Kairiki Energy Limited 30.1%; Trafigura Ventures III BV 15%; TG World (BVI) Corporation 12.5%
SC 54A covers some 862 km2, the inboard, shallow water area portion of the Service Contract Area including the Tindalo and Yakal oil discoveries.
The Tindalo oilfield was discovered by the Tindalo-1 exploration well in October 2008. The well was located in approximately 100 metres of water and targeted a pinnacle reef structure similar to the nearby, producing Nido and Matinloc oil fields and intersected a 124-144+ metre oil column in Miocene carbonate reservoir. The reservoir is characterised by a prevalence of vugs and fractures. The well was plugged and suspended and has been re-entered and completed for production in the Tindalo development project. Since its discovery, the Joint Venture approved a Final Investment Decision (FID) in December 2009 to develop the field.
The field is being developed using a leased, jack-up rig to re-enter and complete the suspended Tindalo-1 well for production. An electric submersible pump has been installed as part of the well completion to assist in maintaining production rates once water production occurs. The jack-up rig (the Aquamarine Driller) will remain on location to provide a stable weather-tolerant production platform using specially installed production equipment on board. Crude oil from the well will be processed on the rig and then flowed into storage via a floating hose to a leased dynamically positioned, Floating Storage and Off-loading (FSO) vessel (the Tove Knutsen) located nearby.
The shallow water area of SC 54A boasts more than 20 pinnacle reef discoveries and prospects with potential oil in place ranging from 2 to 20 million barrels each.
Service Contract 54 Area B (SC 54B)
Operator: Nido Petroleum Limited 60% Participating Interest
Joint Venture Partner: Kairiki Energy Limited 40%
SC 54B covers some 3184 km2 the outboard area of the block which contains the large Gindara prospect along with several other attractive exploration targets.
The Gindara prospect consists of Oligocene to Miocene Nido Limestone reservoirs with a mid-Miocene Pagasa Formation claystone seal in a large, simple anticlinal structure. The prospect is ideally located to have received hydrocarbon charge with respect to the Malampaya Graben, which has generated the oil and gas for all the oil and gas fields in the area.
The prospect is approximately 28 km2 in size with a relief of over 300 metres. Mean in place oil reserves are estimated by the Operator, Nido Petroleum Limited, to be 634 mln bbls. The SC 54B Joint Venture has continued to engage companies during the period with a view to farming-out the acreage and obtaining a partner to fund the drilling of the Gindara prospect.
The Gindara prospect is now considered substantially de-risked following completion of the PSDM work and revised volumetrics. The prospect represents an outstanding high potential/low risk drilling candidate for the first well in SC 54B.
