The DOE 7 confirmed preparations are underway by new contractor Texcal Energy to revive the Alegria Oil and Gas Field in Cebu to strengthen long-term regional energy supply.
During a May 20, 2026 site inspection, DOE 7 Director Renante Sevilla noted that local officials demanded direct involvement and updates, citing a lack of communication during previous exploration activities.
The field holds an estimated 27.93 million barrels of oil and 9.42 billion cubic feet of natural gas reserves, which could support the Visayas grid amid recurring power plant outages.THE Department of Energy (DOE) 7 confirmed that preparations are underway for the revival of oil and gas exploration in Alegria, Cebu, as officials push to strengthen the region’s long-term energy supply amid recurring power issues.
DOE 7 Director Renante Sevilla said permit processing, environmental compliance requirements and site clearing operations are underway for the planned reopening of the Alegria Oil and Gas Field.
The project will be handled by Texcal Energy, which recently took over as contractor for the field.
Sevilla said officials from the national and regional DOE offices visited the Alegria site on Wednesday, May 20, 2026, to inspect the area and assess preparations for the project’s revival.
Among those present were DOE Undersecretary Alessandro Sales, Provincial Government representatives, Alegria local officials and members of the Provincial Committee on Energy.
Sevilla said the contractor is eager to begin production operations, but several regulatory requirements still need to be completed. He said local officials raised concerns during consultations, particularly over the lack of updates during previous exploration activities.
“The mayor wants the LGU to be directly involved and informed about developments concerning the oil field,” Sevilla said.
Oil and gas reserves
Initial DOE estimates showed the Alegria field contains about 27.93 million barrels of oil in place, with around six million barrels considered recoverable.
The field also holds an estimated 9.42 billion cubic feet of natural gas reserves, of which 6.6 billion cubic feet are believed to be recoverable.
Sevilla said the natural gas component could support power generation in Cebu as the Visayas grid continues to face supply issues caused by outages in several major power plants.
He said the contractor is studying the possibility of establishing a mini-refinery in Cebu to produce diesel fuel locally.
“So, it is a very, very good development as far as Cebu,” Sevilla said.
Visayas power situation
The planned revival comes as the Visayas grid continues to face recurring Yellow Alerts because of insufficient operating reserves and outages affecting major power plants.
Sevilla earlier confirmed that several generating units, including facilities operated by Therma Visayas Inc. and Panay Energy Development Corp., remain under forced shutdown because of mechanical damage.
Some affected units are expected to resume operations by July or August.
Despite the outages, Sevilla said the DOE continues to coordinate with the National Grid Corp. of the Philippines, power generators and distribution utilities to manage the Visayas power situation.
Renewable energy push
He said the DOE is also promoting renewable energy projects, including offshore wind, solar, geothermal, hydroelectric and battery energy storage system developments.
According to Sevilla, the Visayas grid currently operates on an energy mix of about 50 percent renewable and 50 percent conventional sources such as coal.
He said the revival of the Alegria Oil and Gas Field could become part of Cebu’s long-term energy strategy if production plans materialize within the year. / ABC