Both the Cebu provincial government and the Department of Energy (DOE) are verifying claims by an Australian oil firm about finding oil reserves in Aloguinsan town, midwest Cebu.
The Sydney-based Gas2Grid Limited posted on their website last Jan. 3 that the DOE recognized their Malolos-1 exploration as a successful oil discovery effort.
An extension of their service contract to explore the area will take effect on January 28.
Antonio Labios, DOE regional director, said Gas2Grid’s claims of DOE recognition is still being verified by Ismael Ocampo, DOE asst. director for energy resources.
As a procedure, Labios said the Energy Secretary should report this to the President who will then make a public announcement.
“We cannot just release information because we may be giving a false alarm,” he said.
He confirmed that Gas2Grid “is a valid service contractor of DOE” and has been exploring for oil near Carcar City up to Pinamungahan town in the west.
Its oil rig in barangay Olango, Aloguinsan is about eight kilomters from the municipal hall and started in 2005 although the rig itself has been there since 1959, said Aloguinan vice Mayor Augustus Moreno.
The company said it will proceed with oil production testing in February “subject to equipment availability.”
Cebu Gov. Hilario Davide III said he will verify the Australian firm’s announcement. He said concerns like potential environmental hazards and the impact on marginal fishermen need to be addressed.
“I’m sure it will pass through the province and we will have to study it very hard. We also have to ask the stakeholders for their views on that.”
The discovery was made inside the area of the onshore Malolos Oil Field which covers 750 square kilometers from Carcar City to Aloguinsan and San Fernando in the midwest.
The company said oil was produced on short term tests at indicative production rates between 100 to 200 barrels of oil per day.