Ealier this year Nido raised $350,000 for the production studies of the Galoc field located in the Palawan Basin in the Philippines, which flowed more than 360,000 barrels (bbls) when put on an extended production test in 1981.

A statement from Nido said mean oil in place volumes of 150 million barrels are not seen by Unocal as large enough for a company of Unocal's size to proceed with a development.

Nido will now start discussions with other oil companies with regard to the Galoc oilfield.

Nido holds an extensive acreage position through its stake in permit SC 14. The permit is divided into four blocks (A, B, C & D). Block A is situated within the southern portion of SC 42 and includes the Nido Oilfields, which are serviced by two production platforms and one processing platform.

Block B/D contains the Matinloc, Pandan and Libro oil fields with 3 platforms. Block C contains the West Linapacan A and B and the Galoc oil discoveries