Trafigura farms into offshore Philippines block

Offshore staff

SUBIACO, Australia -- Yilgarn Petroleum Philippines has entered into an agreement with Trafigura Ventures III BV (Trafigura) to farm-out 5% of its current 40% interest in the Service Contract 54 block A (SC 54A), offshore the Philippines. Kairiki’s joint venture partner, Nido Petroleum Philippines, has reached a similar agreement with Trafigura to farm-out 10% of its working interest in the area on similar terms and conditions.

According to the companies, the farm-out agreement with Trafigura enables the joint venture to progress towards development of the Tindalo oil discovery followed by other targets within the contract area that contains significant additional contingent and prospective resources.

Trafigura will pay $3.8 million for the transaction, after which it will be responsible for its participating interest share of the Tindalo field development costs.

Operator Nido is finalizing arrangements for the rig and FSO, and preparing for final project investment approvals.

10/23/2009