Dennis Morton, the company’s managing director, confirmed the ground has yielded oil deposits but they could not yet determine if it can be developed commercially.
He said in the next months, they are going to further test the field. If positive, they said they “will re-apply with the Department of Energy for a 25-year production license to fully develop the field.”
Officials of the Gas2Grid were in the Capitol on Monday, March 3 to apprise Governor Hilario P. Davide III of their project. Department of Energy (DOE) 7 Director Antonio Labios arranged the meeting.
Labios said the oil discovered in the two wells in Malolos have higher commercial probability.
According to the company’s website, “if the oil bearing reservoirs are continuous between the two wells, then Malolos could be a very large oil field. At this stage, the Malolos oil field warrants further appraisal by longer term oil flow testing, seismic acquisition and drilling.”
The company assured Governor Davide during the meeting that the Malolosoil field would only create minimal adverse affects to the environment.
According to the company, the DOE would not give them service contract if the oil exploration were dangerous.
Labios said the oil field is located onshore and would only cover of up to 4,000 square meters of lot. Hence, it will only affect the plants in its vicinity.
Governor Davide said the province has to ensure that the project is safe to the environment and to the communities in Aloguinsan.
The national government exercises control over oil production activities. However, according the local government code, the local government units including the barangay have shares in the profits from the commercial extraction of natural resources.
The company also added that they hired local drillers with salaries equivalent to what they would have had received abroad.
The DOE awarded Gas2Grid a service contract in 2004. They were given a 12-months extension following the expiration of their contract last January. Xerxes Alkuino