New oil and natural gas source found in Cebu

0
2500

The country’s new source of oil and natural gas has been found in Alegria town in Southern Cebu.

The Department of Energy (DOE) declared the Alegria Oil Field to have commercial quantities of natural gas and oil resources after exploration and drilling activities on the oil field by the service contractor yielded the desired deposits.

The 2018 Joint Declaration of Commerciality was made by DOE and China International Mining Petroleum Company Limited (CIMP Co. Ltd.), the service contractor which has been exploring the oil field since 2009.

In 2016, the DOE and CIMP Co. Ltd. jointly established that the oil field contained commercial quantities of natural gas upon its discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.

The DOE and CIMP Co. Ltd. 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/reserves.

For natural gas, about 9.42 billion cubic feet (bcf) reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70% of total natural gas in place/reserves.

Based on the development plan crafted after the initial testing, the natural gas and oil production of the field may last until 2037.

In a Cebu government report, site engineer Engr. Dennis Guardiario of the East Asia drilling contractor, said the third, fourth and fifth well in Barangay Montpeller, Alegria may produce 300 to 400 barrels of crude oil daily.

DOE-7 regional director Saul Gonzales said that crude oil and gas in commercial quantity will spur economic growth in Alegria and the whole Cebu province, even in the country.

Facebook Comments