Unocal has submitted an exploration proposal to Filipino authorities seeking to develop the offshore Galoc oil field in northwest Palawan, in which the Perth minnow holds a 17% stake.
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It is understand that the Californian-based oil company wants to conduct a three phase study to assess the technical and economic viability of developing the Galoc field.
Nido executives would not be drawn on the matter as the news has not yet been released to the Australian Stock Exchange. It is understood the deal is yet to be formally verified.
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.
The first phase of the Unocal farmin, which is expected to cost around $US400,000, will involve the reprocessing of 3D seismic data and detailed geological and geophysical studies.
The $US2 million second phase will involve engineering and production modelling of the field with full development of the field scheduled to start in the third phase.
The field is said to hold 50 million barrels of oil reserves with first flows about three years after the commencement of the study phase.
