by Lenie Lectura, 03 April 2015
from BusinessMirror
AUSTRALIAN-BASED Nido Petroleum Ltd. said it is still interested to take part in developing the West Linapacan oil field.
“Nido remains committed to progressing a West Linapacan redevelopment project and will update the market further if there are any material development,” said Nido, which has a 22.279-percent participating interest in the project.
This, after it received formal notification from the Department of Energy (DOE) that Pitikin Petroleum Plc.’s and RMA West Linapacan Pte. Ltd.’s interest in Block C2 of Service Contract (SC) 14 have been terminated.
The DOE has advised the company that Pitikin’s and RMA’s participating interests in the joint venture have, pursuant to the terms of the relevant farm-in agreements, reverted to the Philodril Corp., Oriental Petroleum & Minerals Corp., Linapacan Oil Gas & Power Corp., Forum Energy Phils. Corp., Cosco Capital Inc. and PetroEnergy Resources Corp.
“Nido was not a party to these farm-in agreements and Nido’s existing 22.279 participating interest is, therefore, not altered by the termination process,” the company said.
In January this year members of the consortium holding SC14C-2 have declared to terminate the agreement with Pitikin, after the latter failed to comply with the terms in the agreement.
Under the May 29, 2008, agreement, the members of the consortium have agreed to assign 75 percent of each of their participating interest in SC14C-2, which covers the West Linapacan oil field, subject to the conditions of the agreement.
Among the conditions is that Phase 2 work program, which includes the drilling of one well, shall be completed within 18 months following the month in which Pitikin as farmee has received all government approvals necessary to Pitikin as the official operator of SC14C-2. However, Pitikin failed to comply.
“Had this been strictly followed, Pitikin should have completed the Phase 2 work program in December 2013. However, this was initially extended to June 2014, and then later agreed to be further extended to December 31, 2014,” Philodril President Francisco Navarro earlier said.
The December 2014 deadline lapsed without Pitikin completing Phase 2. As a result of the breach, the agreement was terminated.
