Cebu oil field found commercial
The Energy Department on Wednesday declared Alegria Oil Field in Southern Cebu to have commercial quantities of natural gas and oil resources, boosting the country’s efforts toward energy security.
Energy Secretary Alfonso Cusi made the announcement after the ceremonial signing of the joint declaration of commerciality between the department and service contractor China International Mining Petroleum Co. Limited.
CIMP holds Petroleum Service Contract No. 49 which covers the Alegria Oil Field, an onshore site in the fourth-class town of Alegria in the southern part of Cebu province.
CIMP, a subsidiary of Polyard Petroleum International Group, acquired an 80-percent stake in the participating interests of the SC 49 project and became its operator in July 2009.
The contract covers a 25-year production period.
Sources said the flow rate of the oil and gas project would be determined after testing.
Cusi and CIMP chairman Lam Nam signed the agreement while Energy Undersecretary Donato Marcos and CIMP chief executive Eric Lie served as witnesses.
Exploration and drilling activities on the oil field by the service contractor started in 2009.
“The DoE and CIMP jointly established that the oil field contained commercial quantities of natural gas upon its discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area,” the department said in a statement.
CIMP discovered an estimated 27.93 million barrels of oil with a possible production recovery of 3.35 MMBO or a conservative estimate of 12 percent of total oil in place/reserves.
It also found about 9.42 billion cubic feet reserves of natural gas, with the recoverable resource estimated at 6.6 bcf or about 70 percent of total natural gas in place/reserves.
Based on initial testing, the natural gas and oil production of the field may last until 2037.
The JDC outlined the roles and responsibilities of CIMP, especially its compliance with all conditions stated in the approved Plan of Development dated Dec. 19.
It has been several years since a new oil and gas exploration service contract has been declared of commercial quantity. The latest was the Galoc field in Service Contract 14C in northwest Palawan.