Thursday, March 15, 2018

DOE declares Alegria oil field in Southern Cebu as commercially viable



By Lenie Lectura - March 14, 2018

THE Department of Energy (DOE) formally declared the Alegria Oil Field in Southern Cebu to have commercial quantities of natural gas and oil resources.
The DOE and China International Mining Petroleum Co. Ltd. (CIMP Co. Ltd.) discovered an estimated 27.93 million barrels of oil with a possible production recovery of 3.35 MMBO, 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 BCF,  or about 70 percent of total natural gas in place/reserves.
CIMP Co. Ltd. holds Petroleum Service Contract 49, which covers the Alegria Oil Field.
Based on the development plan crafted after the initial testing, the natural gas and oil production of the field may last until 2037.
A ceremonial signing of the Joint Declaration of Commerciality (JDC) between the DOE and the service contractor was held on March 14.
The DOE said the JDC outlined the roles and responsibilities of CIMP Co. Ltd., particularly its compliance with all conditions stated in the approved Plan of Development issued in December last year.
Exploration and drilling activities on the oil field by the service contractor started in 2009.
In 2016 the DOE and CIMP Co. Ltd. jointly established 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.

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