ENERGY Secretary Alfonso Cusi and a Chinese company have jointly declared an oil field in Alegria town in southern Cebu to be commercially viable, with reserves of oil and natural gas that could last until 2037.
The Department of Energy (DOE) and service contractor China International Mining Petroleum Company Limited (CIMP) Company Limited signed on Wednesday, March 14, a Joint Declaration of Commerciality (JDC).
In a statement, the DOE said the oil field holds an estimated 27.93 million barrels of oil (MMBO), with a possible production recovery of 3.35 MMBO or a conservative estimate of 12 percent of total oil in place/reserves.
For natural gas, about 9.42 billion cubic feet (bcf) reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70 percent of total natural gas in place/reserves.
CIMP holds Petroleum Service Contract (SC) No.49, which covers the Alegria Oil Field. Exploration and drilling activities started in 2009.
The Energy department and CIMP jointly established in 2016 that the area holds commercial quantities of natural gas upon its discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area. The town is located about 112 kilometers southwest of Cebu City.
The DOE approved on December 19, 2017 CIMP’s development plan for Alegria. Based on the plan, the natural gas and oil production of the field may last until 2037. (MVI/SunStar Philippines)