Joint venture partners Nido Petroleum and Kairiki Energy have sold a combined 15 per cent interest in the Tindalo oil project in the Philippines to international commodities trader, Trafigura, for $12.7 million.
The project interest sale now paves the way for both Nido and Kairiki to develop the Tindalo field, located within the partners' Service Contract Block A tenement area, with a final investment decision expected soon and first oil targeted for early next year.
Under the deals, Trafigura will buy a 10 per cent project stake from Nido for $US7.6 million ($8.5 million) cash, reducing the latter's stake to 50 per cent.
Trafigura will also buy a 5 per cent project interest from Kairiki for $US3.8 million ($A4.2 million).
Trafigura has also agreed to market the crude oil from the project for both Nido and Kairkiki.
Trafigura will also be responsible for its participating interest share of the development costs.
The agreements are subject to due diligence and Philippine government approvals.
Shares in both Nido and Kairiki, which were previously in a trading halt, climbed higher on the news, with the share prices of both companies gaining one cent each to 14.5c and 16c, respectively, at 14:26 AEDT.
