Lundin, Nido drilling campaign delayed by typhoon

By Alexander Ginting

Australian oil firm Nido Petroleum said that drilling campaign at Baronang PSC offshore Natuna has been delayed as movement of Hakuryu 11 rig was impacted by typhoon that hit the Philippines.

The company said that the rig is now expected to arrive on location at the Baronang PSC during the third week of December ahead of the drilling of the Balqis-1 and Boni-1 prospects. The company is also awaiting clarification as to whether the drilling of the Gobi 1 prospect in the Gurita PSC will now be re-sequenced to the second half of 2014 from initial plan of first quarter of 2014.

Initially the drilling campaign is expected to start in November.

The exploration wells in the Gurita and Baronang Contract Areas form part of a larger rig-share program being coordinated by Premier Oil on behalf of Lundin.

Nido has 10 percent interest in three Indonesian PSCs operated by Swedish firm Lundin Petroleum, namely Baronang, Gurita and Cakalang PSC with option to increase participation to 20 percent prior to the commencement of drilling campaign.

The company said it was still considering the appropriate equity level for Nido in each of the Indonesian PSC?s. ?On current estimates we have until mid-January to make a decision with respect to increasing our equity in the Baronang PSC in the first instance,? the company said.

Editing by Reiner Simanjuntak