Nido willing to sell Tindalo oil output

MANILA, Philippines – Australia-based Nido Petroleum Ltd. will soon start negotiations with potential buyers of its oil output in the Tindalo oil field in Northwest Palawan.

Nido deputy managing director Joanne Williams said they would commence talks with interested takers of its oil produce by the middle of next month.

Williams said the Tindalo field has been producing up to 11 million barrels of oil. Operating under Service Contract (SC) 54A, the field is run by the consortium composed of Nido, Kairiki Energy Ltd., Trafigura Ventures III B.V. and TG World (BVI) Corp.

“Over the last two weeks, whilst online, oil production has averaged 4,000-5,000 barrels oil per day,” the Nido official said.

Based on its report to the Australian Stock Exchange, Nido said Tindalo’s production may continue to rise as soon as the oil firm completes the field’s tests and a workover needed to eliminate water being pumped out of the well.

The workover, it said, may involve re-cementing or re-perforating the Tindalo well, which would take two weeks to complete.

But Nido said it will continue production activities in line with its target to sell Tindalo’s first crude by mid-August, which is expected to be for 200,000-250,000 barrels.

As of July 20, Tindalo has produced more than 135,000 barrels of oil since it started churning out crude in early June.

“Marketing for the Tindalo crude oil is progressing, with the preliminary assay indicating high value product in comparison to its peers and potential buyers within the region showing genuine interest,” Williams said.

It would be noted that Petron Corp. and Pilipinas Shell Petroleum Corp., the country’s two existing oil refiners, have signified interest in buying Tindalo crude, depending on tests that will determine the product’s compatibility with their refineries.