The country has a new gas and oil source as the Energy department declared the Alegria Oil Field to have commercial quantities of natural gas and oil resources.
Department of Energy secretary Alfonso Cusi has signed a Joint Declaration of Commerciality (JDC) with service contractor China International Mining Petroleum Company Limited (CIMP Co. Ltd.)
CIMP Co. Ltd holds the Petroleum Service Contract (SC) No. 49 that covers the Alegria Oil Field.
In 2016, the DOE and CIMP Co. jointly established that the oil field contained commercial quantities of natural gas upon its discovery of oil accumulation in the adjacent hydration traps within the Alegria underground area.
There are 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 place/reserves.
For natural gas, around 9.42 billion cubic feet (bcf) reserves were found, with recoverable resource estimated at 6.6 bcf or 70 percent of total natural gas in place/reserves.
The natural gas and oil production in the field may last until 2037, according to the development plant crafted following the initial testing.
The project will provide the country a new oil and gas source as the Malampaya deepwater gas-to-power project is seen to run out of 2024.
Malampaya is the supplier of the three major gas-fired power plants in Luzon worth 3,500 megawatts which include the Sta. Rita, San Lorenzo, San Gabriel, Avion, and Ilijan power plants.