Nido, Colossal deal falls through

Nido Petroleum has informed that the sales deal between the company and Colossal Petroleum for the non-core assets offshore the Philippines has fallen through.

The company said that the Sale and Purchase Agreements entered into between Nido and Colossal Petroleum Corporation with respect to Nido’s participating interests in Service Contract 54A and Block A, Block B, Block B Retention and Block D Retention of Service Contract 14 have been terminated due to the failure of the parties to secure relevant Joint Venture and Government approvals.

“Nido will therefore retain its interests in these Service Contracts and will provide further updates to the market if there are any material developments,” the company said in a statement.

Under the terms of the original agreement, Nido was to receive a cash sum of AUD $3 million in consideration for the divestment of the assets, and Colossal Petroleum Corporation would assume all of Nido’s share in oil producing wells, infrastructure and oil field platforms as well as the liabilities in the relevant blocks within Service Contract 14.