Nido: Shell Farms In To SC54 Billion Block In Philippines Palawan

Australia's Nido Petroleum Ltd. (NDO.AU) said Wednesday that it has agreed with Shell Philippines Exploration B.V. for the Royal Dutch Shell PLC (RDSA) unit to farm in to Service Contract 54 Block B in the Palawan Basin in the Philippines.

Shell will acquire a 45% participating interest in the block with Nido contributing 27% and partner Kairiki Energy Ltd. (KIK.AU) 18%, Nido said.

Nido will remain operator for the drilling of the Gindara-1 exploration well at the block, it said.

The transaction is subject to joint-venture approvals and approval by the Philippines Department of Energy as well as other conditions, Nido said.

The Gindara prospect is about 50 kilometers south of the Shell-operated Malampaya gas field in Service Contract 38, the largest discovery made in the Philippines to date, it said.

-By Singapore Resources Desk, Dow Jones Newswires;