Duterte leads opening of new oil field in Cebu

Danessa Rivera (The Philippine Star) - May 21, 2018 - 12:00am

Alegria, Cebu, Philippines — President Duterte led on Saturday the ceremonial start of the oil and gas production at the new oil field here, touted to be the first onshore oil discovery and production to date which will add to the country’s energy security and stability.

In an interview with reporters, Energy Secretary Alfonso Cusi said the new oil field has a small production but it could serve the requirement of the host community and the neighboring community, which is critical to achieving energy security.

“This Alegria gas and oil found will help us again in our energy security and sustainability. The gas I believe is around 100,000 cubic meter a day and that will be enough to power something like 3.5 to five-megawatt (MW) power plant,” he said.

“The quantity of production is still not that big but that will be ready enough to power some of the cement factory, some canning factory and that would help us also save dollars,” the Energy chief said.

The Alegria oil and gas field will also contribute to national government’s coffers in compliance with the 60-40 revenue sharing under Presidential Decree (PD) no. 87.

The Alegria oil and gas field currently operates under Petroleum Service Contract (SC) No.49 and is being operated by service contractor China International Mining Petroleum Co. Ltd. (CIMP) for 25 years.

The oil field is discovered to have 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. 

But currently, the oil and gas field is only producing oil at 200 barrels per day (BPD) from six wells and will add more wells to produce 1,000 BPD, CIMP assistant country manager Edgar Benedict Cutiongco said in another interview.

“We’re producing at this point around 200 barrels per day. We sell it locally,” he said. The local market is composed of industrial and cement companies that use the oil to fuel their bunker-fired power plant. 

  • Latest
  • Trending
Are you sure you want to log out?

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with