THE natural gas discovered in the Alegria field in southern Cebu can supply the requirements of a small power plant, the Energy department said, adding that plans are underway to build a 60-megawatt (MW) facility.
“They are already working, preparing a small power plant that will be fueled by natural gas. It’s only small but that will again help the Visayas [and] Cebu,” Department of Energy (DoE) Secretary Alfonso G. Cusi told reporters.
He said the exact capacity of the power plant has yet to be finalized although initial estimates are at 60 MW. The operator of the Alegria field is China International Mining Petroleum Co. Ltd. (CIMP).
Last week, the DoE and Hong Kong-based CIMP signed a joint declaration of commerciality, paving the way for the resources — both crude and natural gas — in Alegria to start flowing.
CIMP, the holder of Petroleum Service Contract (SC) No. 49 covering the Alegria oil field, started exploration and drilling activities in 2009, although the DoE and the service contractor established only in 2016 that the area has commercial quantities of natural gas.
CIMP 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, the DoE said earlier.
For natural gas, it said about 9.42 billion cubic feet (bcf) of reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70% of the total natural gas in place.
It also said that based on the development plan drafted after the initial testing, the natural gas and oil production of the field may last until 2037.
Mr. Cusi said that on a daily basis, the two oil wells in Alegria are capable of delivering 180 barrels each.
“That means 360 barrels per day from the two wells. This is crude oil. [CIMP] is ready so we’re just scheduling when will be the first delivery, first output,” he said.
“It will help the local economy because it will support local industry, like cement factories and the local industries that are using crude oil as fuel. So that will be a big help,” he said.
Mr. Cusi said over the past hundred years attempts had been made to recover crude oil in the area.
“It’s only now that there is this kind of development,” he said.
Mr. Cusi said the sharing of Alegria’s output is 60% in favor of the government and 40% for CIMP.
“At the beginning it will be — 90% will be for the capital recovery, then the 10% will be shared 60-40, 60% [in favor of the] government,” Mr. Cusi said, adding that the 90% share of CIMP was meant to allow the operator to recover its investment. — Victor V. Saulon
