$22m Tindalo project gets green light

Kairiki Energy and Nido Petroleum have given the green light for the development of their $US20 million ($A22 million) Tindalo oil project in the Philippines.

The final investment decision on the project comes after the oilfield was discovered in October last year.

Kairiki, which holds a 40 per cent of the project, said first oil is expected in the second quarter of 2010 with an initial production rate of between 7,000 to 15,000 barrels of oil a day.

The project is estimated to cost around $US250,000 a day to operate.

Shares in Nido dipped half-a-cent to 16.5c while shares in Kairiki were unchanged at 14 cents at 14:27 AEDT.