Aloguinsan locals welcome ‘oil news’

CEBU, Philippines - Residents of barangay Olango in Aloguinsan town, where oil was reportedly discovered by a foreign firm, could not believe there is oil in their area.

The FREEMAN yesterday visited the location of the Malolos-1 oil rig to check the area and interview the residents in the barangay about the reported oil discovery.

However, there was no one at the oil rig except for a security guard because, the people living nearby said, exploration works have stopped since September

Olango barangay captain Cirila Carang said that one of the managers of Gas2Grid Ltd., the foreign firm behind the oil explorations, told them to direct anyone who wants to know more about the oil exploration to the Department of Energy (DOE) since they themselves do not know about the reported oil discovery.

"Kami nahibong lagi mi og ngano nikalit lang," Carang said.

One of the laborers, Daniel Bautista, was also surprised with the report.

"Kami nga nagtrabaho dinhi, wa man hinoon kahibawo," he said, adding that when the operations stopped last September, they were just told to wait for further announcements.

"Kanindot unta anang balitaa kung matinuod lang," Carang said.

Although some residents in the barangay complained of noise at night when the foreign oil firm was still actively operating, the barangay chief said the benefits of the oil exploration far outweigh the inconvenience it has caused.

Carang said the foreign firm employed some of her constituents to work in the oil exploration and the stores near the area also enjoyed brisk sales.

Meanwhile, Aloguinsan Mayor Augustus Caesar Moreno is confident the report about the oil discovery is really true saying that he already know about the presence of oil in the town.

"Kahibawo naman ko daan nga naay oil although subject to test sa quality and its commerciality," Moreno told The FREEMAN.

Once operational, the local government units involved - from the province, municipality down to the barangay - will get their respective shares of the gross revenues, he added.

Since Gas2Grid is still doing exploration works, the firm is not yet required to pay taxes to the local government but Moreno said that once the firm starts extracting oil, it has to pay taxes to the LGU.

"If you have to weigh bitaw unsa'y kaayuhan ug unsay negatibo, daku kaayo og bintaha oy og madayun na siya," Moreno said.

When the exploration started in 2005, Moreno said Gas2Grid employed around 50 locals and another 30 locals during the testing stage. The company also extended assistance to barangays by repairing and improving existing school buildings, health centers and day care centers.

Australian firm Gas2Grid Limited, through its website, earlier announced that the DOE has recognized the oil exploration in Aloguinsan as an oil discovery. The firm also announced that because of the discovery, the energy department has extended the firm's service contract, SC 44, for one year. The extension of SC 44 will take effect on January 28 and will last for 12 months.

The potential oil volume spotted in the Malolos oil field, based on Gas2Grid's initial assessment, was described as "contingent resource" and ranges between a "low estimate" of 4 million barrels and a "high  estimate" of 42 million barrels with the "best estimate" of 12 million barrels of "total oil in place." /QSB (FREEMAN)