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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