Cebu north oil explorations underway

CEBU, Philippines — Oil exploration is now being done in some parts in northern Cebu following the success of Alegria Oil Field in the south, an official from the Department of Energy said yesterday.

Jesus Tamang, director of Energy Resource Development Bureau, said both offshore and onshore explorations are being undertaken by Forum Exploration Inc.

The exploration is eyeing the Libertad gas prospect in Bogo City and Maya prospect in the municipality of Daanbantayan, both in northern Cebu.

Speaking at a press conference in Cebu City yesterday, Tamang said natural gas reserves had already been discovered in Bogo City before but were only utilized for about seven years.

He said the DOE was hopeful oil and gas reserves in these areas will further be discovered, citing the abundance of such in Alegria town in southern Cebu.

It was March last year when the onshore oil field in Alegria, operated China International Mining Petroleum Co. Ltd. (CIMP), was inaugurated, which the DOE had said can power a 60-megawatt (MW) gas plant.

The oil field has commercial quantities of natural gas and oil resources.

For oil resources, the DOE had said the field can produce a total of 360 barrels per day.

CIMP had discovered about 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 field's natural gas and oil production may last until 2037, based on the development plan created after the initial testing.

The discovery of natural gas reserves can potentially boost the local economy, as the local government will also be given shares from the company's income.

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