Use oil, gas revenue to fuel town’s growth, Duterte tells officials

By: Marc Eric Cosep May 19,2018 - 10:55 PM

President President Rodrigo Duterte called on officials of Alegria town in southern Cebu to plan the municipality’s development amid the imminent launching of oil and gas production in one of their barangays.

Clad in dark polo shirt and gray slacks, the President led the ceremonial opening of the valve that kicks off commercial operation of oil and gas production activities held in Barangay Montpeller on Saturday, May 19.

President Duterte said Alegria should brace for the arrival of tourists and foreigners as their town experiences development due to the commercial oil and gas production. “Dato namo ani (You will be rich),” Duterte said.

Duterte said he is thankful to China International Mining Petroleum Limit Co. (CIMP) and the Department of Energy (DOE) for helping usher in development to the town.

“With this, the Philippine government will get 60 percent share from the net sales, while 40 percent will go to CIMP,” the president said.

Of the revenue generated from oil and gas production, 60 percent goes to the national government, while Alegria town and Barangay Montpeller will receive 18 percent and 14 percent respectively. Cebu province will receive eight percent of the expected revenue.

In a separate interview, Alegria Mayor Verna Magallon said she hopes the oil and gas production will spur the town’s economic growth. “With the increased revenue we can deliver more services to our constituents,” he said.

CIMP started commercial exploration and drilling activities in the town’s oil field in 2009.

The area has six wells and CIMP plans to add more in the next few years, CIMP asst. country manager and director Edgar Cutiongco said.

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TAGS: Duterte, fuel, growth, Oil, revenue, to, towns, use

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