secures the other 10%, page-18

I’ve been checking the gazette to see if there is any amendment to Executive Order (EO) 556 (this being the order of the President restricting PNOC from entering in to farm-outs - originally targeted at Malampaya but having had broader consequences). There is nothing showing in the gazette yet, however I think the wording of this announcement can be taken to mean that PNOC have been given blessing to farm-out. Recall the wording of January’s announcement

“The second stage of the farm-out is subject to certain conditions and Philippine Government
approvals being met which will allow PNOC–Exploration Corporation (“PNOC-EC”) the opportunity
to divest a proportion of its participating interest in SC 63.

Assuming the relevant conditions are satisfied and approvals are secured for the second stage of
the process, 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. “

For NDO to have executed the second stage of the process with PNOC, the political hurdle must have fallen. In that case, all that remains is the formality of the DOE approval - a formality as DOEs concern is fitness to participate in the SC. If NDO had previously been considered fit to hold 50% in the SC then it is surely fit to hold a lesser and non-operating 20%.

A big sigh of relief from me today…