Cebu's Alegria Oil Field to begin commercial production
MANILA, Philippines – Production of natural gas and oil from the Alegria Oil Field in southern Cebu is set to begin, over 8 years after a Chinese firm started its drilling activities in 2009.
Energy Secretary Alfonso Cusi affirmed on Wednesday, March 14, that commercial quantities of natural gas and oil were found in the Alegria field.
Cusi led the ceremonial signing of a joint declaration of commerciality with China International Mining Petroleum Company Limited (CIMP) in Taguig City.
CIMP holds Petroleum Service Contract (SC) No. 49, which covers the Alegria Oil Field.
The Department of Energy (DOE) said the natural gas and oil production of the field may last until 2037, based on the development plan crafted after the initial testing.
CIMP had started exploration and drilling activities in the oil field back in 2009. (READ: Pangilinan still optimistic over oil hunt in West Philippine Sea)
By 2016, the DOE and CIMP established that the oil field contained commercial quantities of natural gas upon discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.
The DOE said CIMP discovered an estimated 27.93 million barrels of oil (MMBO), with a possible production recovery of 3.35 MMBO or a conservative estimate of 12% of total oil in place or reserves.
The DOE added that about 9.42 billion cubic feet (bcf) of reserves were found for natural gas, with the recoverable resource estimated at 6.6 bcf or about 70% of total natural gas in place or reserves.
The joint declaration outlined roles and responsibilities of CIMP, particularly its compliance with all conditions stated in the approved Plan of Development on December 19, 2017.
Signing the declaration along with Cusi was CIMP chairman Lam Nam, while Energy Undersecretary Donato Marcos and CIMP chief executive officer Eric Lai served as witnesses. – Rappler.com