Nido Petroleum subsidiary Nido Production has secured a $30m debt facility from Standard Bank to fund its share for the Galoc oil field Phase II development in the offshore North West Palawan Basin, Philippines.

As part of the first tranche, the bank will provide up to a maximum of $15m for pre Galoc Phase II development Final Investment Decision (FID).

In the second tranche, the bank will increase the facility up to a maximum of $30m for post, which is subject to approvals and other terms of the facility.

Nido Manageing Director Phil Byrne said with a significant portion of the company’s share of the Phase II development funding in place, it is expected to reach the FID decision point for the Phase II development.

"This development will extend the existing production life of the field and deliver additional cash flow and value to Nido in the coming years.

Nido said first oil from the Galoc Phase II development, which is on schedule for FID in 2012, is expected in the second half of 2013.

Front End Engineering and Design (FEED) for the Phase II development was started by operator Galoc Production Company in the third quarter of 2011, and is currently underway.

Drilling of two additional wells is being considered by the Galoc Joint Venture.

Resource estimates made by the operators’ pre-FEED study indicate 3-9 million barrels of oil to be refined at the final point of FID, and is likely to extend life of the Galoc field to 2018.