No endorsement for now: PB committees to study oil exploration in Argao

The Department of Energy and the NorAsian Energy Ltd. failed to get an endorsement from the Cebu Provincial Board, which was so far “dissatisfied” with their explanations over their planned exploration and drilling in Argao.

The request of NorAsian for an endorsement of the project was however referred to the committees on environment, on agriculture, and on barangay affairs for further study.

NorAsian is an oil and gas exploration company that is supposed to undertake the petroluem exploration drilling in Argao. The DOE presented the project to the PB yesterday seeking for an endorsement, as part of the requirements for the project to proceed.

Bert Garcia, NorAsian engineering manager, admitted that so far they have not received any endorsement also from the Argao municipal government, which is also needed for the project, which is expected to last for a month.

PB member Victor Maambong, environment committee chairman, was somehow upset to know that NorAsian had not signed with DOE any comprehensive environmental guarantee fund, to ensure that in case of oil spillage or other drilling mishap, there is a fund to cover the cost of the damage.

Maambong further questioned NorAsian’s capability to undertake the project since it has no track record to speak of and does not have any certification from the International Standard Organization.

Garcia contended that the company will only sign the comprehensive guarantee fund before it starts the drilling. He admitted though that this is the first time that NorAsian, a wholly-owned subsidiary of Otto Energy of Perth in Australia, will undertake the drilling operation.

Maambong was more concerned on the environmental impact of the project considering that NorAsian will drill up to 3,000 meters vertical depth from the seabed.

“How can we assure the Cebuano community considering that you have no track record? And as of now, the way you explained, you cannot give any assurance that this project is safe,” he said. — Mitchelle L. Palaubsanon/RAE