The Department of Energy (DOE) wants to continue the exploration and drilling of oil and gas reserve in the Alegria Oil Field in Brgy. Montpeller, Alegria in southwestern Cebu.
But Gov. Gwen Garcia has something else in mind: invite private firms and let them partner with Capitol to pursue exploration and drilling efforts to harness the town’s untapped oil and gas resources.
DOE Undersecretary Alejandro Sales, during his meeting with Gov. Gwen on Thursday, March 14, said the agency wants to “still continue exploiting” oil resources in the town, that is why it is now inviting private contractors to come in and continue the oil drilling operations in the town.
To recall, the oil’s service contractor China International Mining Petroleum Co. Ltd. (CIMP) was already producing commercial quantities of oil and natural gas back then after the discovery of an estimated 27.93 million barrels of oil with a possible production recovery of 3.35 millions of barrels of crude oil, or a conservative estimate of 12 percent of total oil in place and reserves.
For natural gas, about 9.42 billion cubic feet of reserves were found, with the recoverable resource estimated at 6.6 Billion cubic feet, or about 70 percent of total natural gas in place.
But Sales said the DOE had to terminate the contract with CIMP last year after “they were not able to perform adequately” post-Covid time.
Now that DOE is inviting possible contractors, Gov. Gwen proposed a potential partnership between private investor and the Provincial Government to reignite oil exploration activities in Alegria.
Gov. Gwen asserted the Capitol’s experience and expertise in dealing with private investors in pursuing a lot of economically viable ventures in the province.
The governor’s proposal is something that is not new in Cebu, where public-private partnership (PPP) is the preferred mode of executing large-scale projects, such as the Mactan-Cebu International Airport operations, Cebu–Cordova Link Expressway, as well as the Capitol’s joint venture agreements with Filinvest Land and Manila Water, among various others.
In the energy space, Capitol is also set to sign a joint venture deal with the Consortium of Spanish firm Acciona Energia Global and Freya Renewables Inc. to build a 150-megawatt solar plant in Daanbantayan town.
During the discussion, Sales expressed DOE’s openness to Gov. Gwen’s proposal, emphasizing the agency’s willingness to facilitate discussions between potential investors and the Provincial Government.
The DOE reiterated its commitment to leveraging the oil and gas reserves present in Alegria, highlighting the importance of sustained exploration efforts to harness the town’s energy potential that could greatly help boost the local economy.
The governor believes this scheme works well for Cebu because the “conditions are right here,” citing the unity of local leaders and the Provincial Government’s investor-friendly approach. With that, investors can cooperate Capitol as a potential partner.
By advocating for private investment in the sector, the Provincial Government aims to stimulate growth, create employment opportunities, and drive infrastructure development in Cebu. | Carlo Lorenciana