AN INDONESIAN energy company has received Department of Energy (DOE) approval to begin exploration in the southern Cebu town of Alegria as part of an effort to revive oil production in the area, officials said.
Texcal Energy has officially received the green light from DOE to begin exploration. Unlike previous projects, this contractor plans to build a refinery right on-site. This facility will be used to produce diesel and bunker fuel, which are essential for transportation and industry.
DOE Undersecretary Alessandro Sales reassured the public that the company knows what it is doing. “Our present contractor there has experience in onshore Indonesia refining products in place,” Sales said.
The Alegria oil field is massive, covering 197,000 hectares. However, officials are keeping expectations realistic for now. Initial production is limited to no more than four million barrels of oil.
“Now don’t get very big ideas. The known reserve is small-scale,” Sales cautioned. While the current known supply is modest, the company will continue to explore deeper underground, hoping to find even larger deposits.
The project isn't just about oil; the area is also estimated to hold 9.42 billion cubic feet of natural gas. About 6 billion cubic feet of that can be recovered and used as a clean energy source for the region.
The development is a major comeback for the site:
A Fresh Start: The field has been idle for three years.
Overcoming the Past: Previous work by a Chinese contractor in 2018 was halted in 2023 due to pandemic restrictions.
Proven Track Record: Texcal Energy already produces up to 7,000 barrels of oil per day at its main site in Indonesia.
President Ferdinand Marcos Jr. approved the contract as part of a national effort to find local energy sources. The Cebu provincial government has also welcomed the move, noting that local oil production could help protect the community from global price spikes and fuel shortages during future crises.
By producing fuel right here in Cebu, the project marks a significant step toward making the province more self-reliant.