Chinese gas, oil project still up in Cebu

CEBU - The Department of Energy (DOE) the oil and gas production project in Alegria town are ongoing with the China International Mining Petroleum Ltd. Co. (CIMP) as it major operator, officials said.

Doe-visayas Field Office Oic-director Saul Gonzales said the Environmental Management Bureau has issued Environmental Compliance Certificate (ECC) for the project which covered nearly 48,000 hectares in Montpeller village.

“Extraction work in the project site continues. In fact, there will be an inauguration of the project soon,” Gonzales said.

One of the wells, P8, at the site was temporarily suspended by the DOE following the discovery by the Energy Resource Development Bureau was emitting foul odor.

The Alegria Oil and Gas Production Project is covered by the DOE Service Contract (SC) 49, according to Gonzales.

Last March 14, Energy Secretary Alfonso Cusi and the CIMP declared the commerciality of the Alegria Project, which could last 19 years until 2037, based on current production levels. An estimated 27.93 million barrels of oil (MMBO), with a possible production recovery of 3.35 MMBO, or a conservative estimate of 12 percent of total oil reserves, were discovered in the area.

For natural gas, about 0.42 billion cubic feet (bcf) of reserves were found, with the recoverable resource estimated at 6.6 bcf, or about 70 percent of natural gas reserves. Gonzales said the local government unit of Alegria will get a share of the profit from the project while its residents will have employment and small enterprise opportunities.