Chinese firm strikes oil in Cebu
The Department of Energy (DOE) announced on Wednesday that the Alegria Oil Field in Cebu has commercial quantities of oil and natural gas resources.
“The natural gas and oil production of the field may last until 2037,” the agency said in a statement.
The DOE and service contractor China International Mining Petroleum Company Limited (CIMP Co. Ltd.) have 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 percent of total oil in place/reserves.
Also, about 9.42 billion cubic feet (bcf) natural gas reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70 percent of total natural gas in place/reserves, according to DOE.
CIMP Co. Ltd. started the exploration and drilling activities in the oil field in 2009. In 2016, the CIMP Co. Ltd. and DOE have established that the oil field contained commercial quantities of natural gas upon discovering the oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.
The DOE and CIMP Co. Ltd. signed a Joint Declaration of Commerciality (JDC) at the Hyatt Hotel in Bonifacio Global City.
This JDC outlined the roles and responsibilities of CIMP Co. Ltd., particularly its compliance with all conditions stated in the approved Plan of Development dated December 19, 2017, the DOE said. (PNA)