Dragon Oil plc has signed a farm-in agreement with Nido Petroleum Philippines Limited (Nido) for Service Contract 63 (SC 63) NW Palawan Basin, offshore the Philippines.
Under the terms of the agreement, the farm-in will be completed as a two-stage process, with Dragon Oil initially acquiring a 40% participating interest in SC 63 from Nido's current 50% participating interest in the Service Contract, and is subject to normal Philippine government approvals. The Philippine National Oil Company - Exploration Corporation (PNOC-EC) will continue to have a 50% participating interest.
The second stage is subject to certain conditions being met and additional Philippine government approvals being received. In this stage, Nido will seek to secure an additional net 10% participating interest in SC 63 from PNOC-EC on the same terms agreed between Nido and Dragon Oil. Nido will then have a 20% working interest in SC 63. Dragon Oil has the option to acquire an additional 10% participating interest from PNOC-EC on the same terms and conditions agreed between Nido and Dragon Oil.