The as-yet-unnamed company will take over the stake formerly held by Unocal and will help Nido fully develop Galoc and enhance production at the Nido and Matinloc fields.

According to Nido Executive Chairman, Chares Morgan, “Unocal elected not to continue with the Galoc development because the field did not meet its thresholds. Nido is now in the final stages of documentation regarding a farmin to develop Galoc on similar terms as were agreed with Unocal.”

“It is worth noting that [Unocal’s] thresholds for development are very different to smaller companies,” added Morgan.

In related news, Nido announced it has identified substantial remaining oil at both its Nido and Matinloc acreage with the former’s Nido B field capable of a further 2 million barrels recoverable. Operator Vaalco has been removed, however.

According to Morgan, “Nido believes that this oil can be produced with relatively low capital investment. Despite this the Operator, Vaalco, would not do what was necessary to increase production.”

“Nido [has] identified an operator to replace Vaalco and [will] acquire Vaalco’s interests in the Philippines. The proposed operator is finalising documentation to farmin to the producing assets and other areas such as West Linapacan and Cadlao,” added Morgan.