THE Department of Energy (DoE) issued a declaration of commercial viability on Wednesday for the Alegria oil and gas field in southern Cebu, with production estimated to last until 2037.
In a statement, the DoE said the area’s commercial viability for the fossil fuel was declared by Energy Secretary Alfonso G. Cusi during the ceremonial signing of the Joint Declaration of Commerciality (JDC) between the DoE and a service contractor.
The DoE identified the contractor as China International Mining Petroleum Co. Ltd. (CIMP). The signing was held on Wednesday at the Grand Hyatt Manila in Taguig City.
The DoE described CIMP as holder of Petroleum Service Contract (SC) No. 49, which covers the Alegria oil field.
Signing the declaration along with Mr. Cusi was CIMP Chairman Lam Nam, while DoE Undersecretary Donato D. Marcos and CIMP Chief Executive Officer Eric Lie served as witnesses, the DoE said.
“Exploration and drilling activities on the oil field by the service contractor started in 2009,” it said.
By 2016, the DoE said it had jointly established with CIMP 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.”
It said the two entities “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,” the DoE said.
“Based on the development plan crafted after the initial testing, the natural gas and oil production of the field may last until 2037,” it added.
The DoE said the joint declaration outlined the roles and responsibilities of CIMP, particularly its compliance with all conditions stated in the approved plan of development dated Dec. 19, 2017. — Victor V. Saulon