Gov. Garcia allays fears on new oil exploration

Cebu Governor Gwendolyn Garcia has assured Cebuanos that she will continue to be vigilant in safeguarding the environment with the coming oil and gas exploration of NorAsian Energy Ltd in the province.

Garcia allayed fears among Cebuanos of the new exploration, saying it has good prospects and is very encouraging.

She said the local government units concerned have been very supportive of the project as it will benefit the Cebuanos and the entire country.

Department of Energy regional director Antonio Labios said the exploration company has committed to drill an exploratory well either by the end of December or in January next year.

NorAsian, along with partner Service Contract 51, which composed of TransAsia Oil and Energy Development Corp., Alcorn Gold Resources, PetroEnergy Resources and Vital Resources Corp. of Canada, plans to drill a well at a cost between $6 million and $8 million.

The exploration areas are the 2,040 square kilometers between Bohol and Cebu, which comprises the South Block, and the 2,400 square kilometers in northwestern Leyte tagged as the North Block.

In Cebu, the exploration will include the Sibonga-Argao area.

Service Contract 51 covers the East Visayan basin with a total acreage for oil and gas exploration of 444,000 hectares.

NorAsian officials had earlier said the area has recoverable reserves of five million to six million barrels.

They added that initial studies show that the East Visayan Basin “has moderate risks with matured prospects, with high to very high recoverable reserves.” – Mitchelle L. Palaubsanon/LPM