Two foreign companies are now doing exploration works in southern Cebu to find oil that may help address the country’s quest for oil security, Department of Energy (DOE) regional director Antonio Labios said.
Australian firm Gas2Grid Ltd. is now doing exploration works in barangay Olango, Aloguinsan town while a Chinese petroleum company is conducting exploration in neighboring Alegria town.
“The last time we were informed (by the Chinese company) nga wala pa silay na kuha nga company nga maoy mo drill (they were unable to hire a company to drill),” Labios said.
He didn’t provide any more details of the exploration works in Alegria, saying that it was their head office which issued the service contract to the Japanese firm.
Gas2Grid earlier announced that they found oil deposits, but they have yet to determine if this has commercial viability.
“Na extended ug one year ang ilang service contract (Their service contract was extended) to enable them to further continue their testing and determine if viable commercially ang deposit,” Labios said.
Labios said the “commercial quantity (of their oil discovery) will have to be known this year.”
Aloguinsan Vice Mayor Augustus Moreno said a previous oil search in barangay Olango was run in 1959 .
Gas2Grid assumed exploration works in 2004 and was successful in finding oil deposits in the area.
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