Sacgasco, PNOC sign farm in deal for Philippines block
Sydney-listed Sacgasco and PNOC Exploration Corporation (PNOC EC) have executed a farm in agreement for PNOC EC's entry into Philippine petroleum service contract 6B (SC 6B), Sacgasco said on November 16. The agreement was cleared by the Philippine Office of Government Corporate Counsel (OGCC).
The agreement outlines PNOC EC's acquisition of an undivided 20% participating interest in SC 6B. The agreement also includes the drilling and extended well test of the Cadlao-4 well as the first stage of redevelopment of the Cadlao oil field (Cadlao) in SC 6B. The transfer and assignment of the 20% interest from Nido to PNOC EC is subject to approval by the Philippine Department of Energy.
The execution of this farm in agreement fulfills one of the conditions precedent to the share purchase agreement for the divestment of Nido by Sacgasco. The transaction will be finalised upon shareholder approval.