Prepare for growth, migration
President Rodrigo Duterte told residents of Alegria town in Cebu to prepare for an “expansive and human economic development” as he graced the ceremonial start of the oil and gas production at the Alegria Oilfield yesterday.
The president also told the town to prepare for “massive migration,” contending that people would always gravitate to where the money is.
“Ang tawo bisag asa tong kwarta, magtapok gyud na. Modaghan ang squatters, pag-preparar na mo og relocation. It is a magnet that draws people together. But since you are Filipinos, you should accommodate them and partake of the bounties of what God has given us. Modako ni. Mag-airstrip mo diri. Gagmay nga eroplano. Basta naay market. Naay moari daghan," Duterte said.
The Alegria Oilfield covers a total area of 197,000 hectares with about 42,749 hectares devoted to the production area.
The “Alegria Oil and Gas Production Project” is currently operating under Department of Energy Service Contract (SC) 49. Its major operator is the China International Mining Petroleum Limited Company.
CIMP has entered into a 25-year production contract with possible extension of up to 15 years.
At the Cebu City Sports Center where he opened the Philippine National Games also yesterday, Duterte said that while Cebu, in general, should welcome those who would like to partake of the oilfield’s benefits, Cebu should prioritize itself first.
“Ayaw mo sugot nga kuhaon unya ihatag sa uban. Kamo una. Security sa inyong oil requirements diri… ayaw lang kalimti ang atong mga silingan,” he said.
Alegria Mayor Verna Magallon said they will use the town’s share of the revenue to develop the municipality.
"We can deliver more basic services, improvement of potable water for everybody, electrification of sitios in the far flung areas, improvement of better services, additional benefits for their senior citizens and PWDs, more infrastructure projects and more support for organic farming,” she said.
DOE Secretary Alfonso Cusi who was with Duterte in Alegria urged other investors in the oil and gas industry to develop the more indigenous energy resources in the country. Cusi is optimistic that more oil exploration activities in the country will boost economic activities, which can generate more jobs.
The Alegria Oilfield, he said, serves as a major breakthrough in the Philippine oil and gas industry.
Exploration and drilling activities in Alegria started in 2009. By 2016, DOE and CIMP Co. Ltd. established that the oil field contained commercial quantities of natural gas upon the discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.
On June 3, 2015, the Environmental Management Bureau issued an Environmental Compliance Certificate, which covers the production phases of the project.
Last March 14, 2018, Cusi and CIMP Ltd. Company declared the commerciality of the Alegria Project.
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 in reserves were discovered in the area.
For natural gas, about 9.42 billion cubic feet (bcf) reserves were found, with the recoverable resource estimated at 6.6 bcf or around 70 percent of total natural gas reserves.
Based on the development plan crafted after initial testing, the natural gas and oil production of the field may last until 2037.
ECONOMIC BENEFIT
Based on PD 87 or the Oil Exploration and Development Act of 1972, the Philippine government will get 60 percent share from the net sales of the project while 40 percent will go to CIMP.
From the 60 percent government share, 60 percent will go the national government, 8 percent to the Province of Cebu, 18 percent to Alegria, and 14 percent to the host barangay, Montpeller.
The roles and responsibilities of CIMP Co. Ltd., particularly its compliance with all conditions stated in the approved Plan of Development dated 19 December 2017 has been outlined in the Joint Declaration of Commerciality (JDC) between the DOE and the service contractor China International Mining Petroleum Company Limited (CIMP Co. Ltd.) on 14 March 2018,
Edgar Benedict Cutiongco, CIMP assistant country manager, said the four production wells, if fully operational, has an optimized production of 2,000 barrels of crude oil per day for 19 years or more.
Each barrel is equivalent to 159 liters.
"Our company is first one in the Philippines to produce onshore oil and gas," Cutiongco said.
He said that the P3 oil well can produce 120 barrels per day.
PNG
At the Philippine National Games opening, Duterte apologized for keeping everyone waiting for almost three hours. He had come from straight from Alegria, which is located in southern Cebu.
The crowd at the sports center, however, was enthusiastic, chanting his name like it was election season: “Duterte! Duterte! Duterte!”
There, he announced the development in Alegria.
“Pagtuyok nako, nagsiga na. It indicates that there is really oil there… Ok na mo diri, dili na po maguol. No reason for Cebu now na magcrisis. Ang Bohol pud ug Leyte makinabang pud ani,” Duterte said.
Duterte said he is proud that Philippine sports is alive, acknowledging the positive benefits it brings to the youth, one of which is being away from illegal drugs.
“Reminder, kamo diri sa Cebu, do not destroy my country. Dili ko musugot nga ang mga batan-on, masud sa druga and become slaves sa usa ka chemical called shabu,” he said.
Another good news he gave the crowd are the additional cash prizes he will add to the prizes prepared by the Philippine Sports Commission.
The overall champion will get P5M from PSC and P5M more from the Office of the President, second place will get P4M from PSC and P4M more from the president, the third place will get P3M from PSC and P3M more from the president, fourth place will get P2M from PSC and P2M more from the president, and fifth place will get P1M from PSC and another P1M from the president.
SECURED
No untoward incident was recorded during Duterte’s visit to Cebu yesterday. Even the protest rally staged by cause-oriented groups outside the Cebu City Sports Center was remained peaceful.
Supt. Reyman Tolentin, spokesperson of the Police Regional Office – 7, credited the same to the “diligent preparations” put in place in Cebu City, Alegria, and even in Tabogon town.
"Well, on the ground na ang mga tawo since yesterday and last night especially ang kabukiran ug barangay sa Alegria. Didto na natulog atong kapulisan since last night," Tolentin said yesterday.
Over 1,000 soldiers and policemen were deployed in strategic areas where the president was set to visit.