Energy official: Oil deposits in Tañon Strait to stay untapped

Thursday, October 13, 2011

CEBU CITY -- Tañon Strait could have produced about 400 million barrels of oil, but oil deposits in the area will remain untapped, said an official of the Department of Energy (DOE).

Ismael Ocampo, DOE energy resource development bureau acting director, said it is unlikely there will be oil or gas explorations in Tañon Strait because the area is protected.

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In 1988, President Fidel Ramos declared Tañon Strait a protected seascape through Presidential Proclamation 1234, whose management and protection will be determined by the National Integrated Protected Areas System (Nipas) Act.

During a Kapihan sa PIA forum at Abuhan Pochero, Ocampo said there are many oil prospects in Tañon Strait, the stretch of sea between Cebu and Negros Islands, but these are still unexplored.

The DOE awarded a service contract to the Japan Petroleum Exploration Ltd. (Japex), covering an area of 328,000 hectares.

But Japex’s exploration activities off Pinamungajan in 2007 came up with a dry well, said Ocampo.

Japex and DOE’s attempt to check oil prospects in Tañon Strait, however, met opposition from environmental groups, which filed cases on behalf of the marine animals that consider Tañon Strait as their habitat against Japex, DOE and the Department of Environment and Natural Resources. The cases reached the Supreme Court.

Andy Ulgado of the DOE renewable energy management bureau, who was also one of the resource speakers at the Kapihan, said only an act of Congress can open Tañon Strait to energy explorations.

Ocampo said a presidential act may also amend Proclamation 1234.

Section 54 of the Nipas Act provides that “surveys for energy resources within the protected areas may be conducted” in a protected area, provided these are done in accordance with the protected area’s management plan. The Protected Area Management Board of the Tañon Strait is tasked to draft a management plan for the area, to
establish zones such as strict protection and multiple use.

The law prohibits surveys or explorations in strict nature reserves and natural parks.

In June 2008, Japex pulled out from Tañon Strait, although the DOE website reveals that service contract 46 remains to be under the Japanese firm’s name.

Imports

Ocampo pointed out that the Philippines’ fuel requirement is 99 percent dependent on imports.

He said the country’s oil production is only 6,500 barrels a day compared to the average daily demand of 300,000 barrels.

He said that while the country has several prospects, these cannot be checked and tapped because there is “resistance” to mining and drilling activities.

DOE Visayas Director Antonio Labios said, though, that communities in areas that are being considered for energy exploration activities are beginning to understand their importance.

Aside from Japex, three companies have been granted service contracts to tap prospects for petroleum in the Visayas. These are Forum Energy Philippines Corp. in northern Cebu, with 458,000 hectares, GAS2GRID Pte. Ltd. in central Cebu with 100,000 hectares, and NorAsian Energy Ltd. in East Visayas, with 444,000 hectares.

The DOE website reveals that 752,000 hectares in the area between Leyte, Cebu and Bohol, known as the Visayan Basin, are being offered for petroleum service contracts.