Duterte to lead kick-off today: Alegria starts oil extraction

CEBU, Philippines — President Rodrigo Duterte will lead this afternoon the ceremonial kick-off for the oil and gas production at the Alegria Oil Field Polyard in Barangay Montpeller, Alegria town, 120 kilometers south of Cebu City.

This signals the formal extraction of oil and gas reserves from the site that is believed to be hosting an estimated 27.93 million barrels of oil, about 12 percent of which or 3.35 million barrels may be recovered for production.

For natural gas, about 9.42 billion cubic feet in reserves were found, with a recoverable resource estimated at 6.6 billion cubic feet or about 70 percent of the total natural gas in place.

Duterte will be accompanied today by Department of Energy Secretary Alfonso Cusi, Alegria Mayor Verna Magallon, and Lam Nam, chairman of China International Mining and Petroleum Company Ltd., the service contractor for the oil extraction project.

The president is expected to deliver a speech before an estimated crowd of 200 people composed of Alegria municipal employees and officials.

Magallon told The FREEMAN that oil extraction will commence right after the valve opening of the Polyard-3 Well.

“May testing na sila noon, so I think after sa inauguration mag-go na gyud ang production, pero gradual ang production dili kalit-kalit ba. Gradual ang quantity nga i-produce,” Magallon said.

She said the government would get a 60 percent share in the project’s revenues, while the service contractor would get 40 percent.

The government’s share will then be divided by the province, municipality, and the barangay.

However, Magallon said they still have to meet next week to discuss the exact revenue sharing between the national and local government units.

This early, though, Magallon said the revenue that may be derived from the undertaking would be a big help to fund the programs and projects of the town. Alegria is a fourth-income class town with a population of roughly 25,000 people.

She said the share of the LGU in the proceeds will be used to improve social services such as free medicines and assistance for senior citizens and persons with disabilities.

She also intends to set aside an amount for the livelihood and education programs.

Magallon further expressed optimism that the project would boost the town’s economy with more investors coming in and would open job opportunities for locals.

Asked what the municipal government is doing to ensure the environment will not be damaged in any way, the mayor said she will create a committee with the Department and Energy and the Department of Environment and Natural Resources that will oversee and ensure the extraction activities.

Based on the development plan crafted after the initial testing, the natural gas and oil production on the field may last until 2037.

Full Schedule

The inauguration of oil extraction works in Alegria is only one on the list of events scheduled for Duterte’s visit in Cebu this weekend.

After Alegria, Duterte will also grace the opening ceremonies for the week-long Philippine National Games at the Cebu City Sports Center at 5 p.m. today. About 10,000 athletes are in the city to participate the sports conclave.

Expected to be with Duterte during the PNG program are William Ramirez, chairperson of the Philippine Sports Commission; Dennis Uy, presidential adviser on Sports; and Department of Education Secretary Leonor Briones.

Later in the evening, Duterte will have a dinner with Cebu mayors and vice mayors at Waterfront Hotel and Casino in Cebu City, according to a source who requested not to be named.

On Sunday, Duterte will be in Tabogon, northern Cebu to attend the town fiesta.

He will be welcomed by Tabogon Mayor Zigfred Duterte and Cebu Fourth District Benhur Salimbangon.

Mayor Zigfred said Duterte is also invited to a reunion with his relatives in Tabogon.

Police Ready

Tabogon police chief Superintendent Welther Grapa said they will impose strict security in the town in anticipation of the president’s visit.

Police are all set for the presidential visit with at least 1,000 personnel to be deployed in places where the chief executive is expected to go, according to Police Regional Office-7 Director Chief Superintendent Robert Quenery.

Quenery said they are preparing for an elaborate security for the visit.

“We are deploying at least more than a thousand police officers to cover all the engagement areas,” he said. “Naka-full alert pa naman kami because it’s still election period and it would just be an adjustment of our deployment plan.” — with Patricia Faith T. Santillan, STC Intern/JMD (FREEMAN)