However, the amount of the oil discovered is not commercially viable at this time. DOE Undersecretary Ramon Oca briefed Governor Hilario P. Davide III on the project in a meeting at the Capitol yesterday.
The newly discovered oil well in Aloguinsan is estimated to produce 100 to 200 barrels per day, according to Gas2Grid, the Australian firm who was given a service contract for the oil exploration.
Oca explained that the basic requirement is 3,000 barrels per day for the oilfield to be considered feasible for commercial purposes. The DOE has extended the contract of Gas2Grid to do more exploration work.
In a press conference, Davide said he needed a briefing about the drilling activities. He stated that he wanted to consider all aspects about the project and not only the business side.
DOE 7 Director Antonio Labios, who accompanied Oca, explained that they failed to inform him about the oil exploration because the project was implemented during the previous administration.
Labios added that there are several drilling activities in Cebu and agreed to hold a briefing on coal, oil and gas explorations in Cebu for the new administration in February.
He also disclosed that the Australian firm was bothered about the governor’s public statement about the drilling in Aloguinsan that went on without his knowledge. Labios said the firm will also met and brief him about the technical aspect of their operations.
Oca said they were happy about the oil discovery but their target in Cebu is really not oil but Gas deposits.
He recalled 15 years ago they discovered gas deposits in the same area in Aloguinsan but at that time it had no value.
Currently, a gas field in Bogo City has been developed. It has already produced one megawatt of power supply. Diane Higida