Oil firms assure gov of safe operations

CEBU, Philippines - The two foreign firms conducting oil explorations and drillings in southern Cebu have assured Governor Hilario Davide III of the environmental safety of their operations.

Accompanied by Department of Energy-7 Regional Director Antonio Labios, representatives of Australian-based Gas2Grid (G2G) Limited and China International Mining Petroleum Company (CIMP) Limited met with Davide separately yesterday.

“It is part of our procedure that before proceeding with any energy activities in the area, we must see to it that we have full acceptability,” Labios said.

Labios said the representatives of the two firms took the chance to get the province’s support and to assure the governor that their projects won’t affect the environment adversely.

“Before na sila tagaan og service contract, kinahanglan maka comply sila usa sa technical ug financial requirements,” Labios said.

In a press conference that followed, Davide said he raised some concerns during the meetings, but said the firms have assured them safety standards will be upheld.

“They assure us that they met requirements sa safety standard otherwise di sila kakuha og service contract sa DOE,” Davide said.

Davide stressed that while the projects will be undertaken under the supervision of the national government through DOE, it is the province’s responsibility to ensure that the residents in the areas where the projects will be undertaken will be safe. 

The Province of Cebu, the municipality, and the barangay where the energy activity is being conducted shall get a share from the gross income out of the natural resources there at as provided for by law.

“Ang importante lang gyud para nako as governor, nga no adverse effect sa atong environment and the people sa mga localities where they are drilling are protected gyud,” Davide said.

Labios said that since the activity is on shore, only minimal space would be occupied by the rig.

G2G is undertaking oil flow test in Aloguinsan to determine its commercial viability after the DOE has extended its service contract for one year from its expiration last January 2014.

G2G Managing Director Dennis Morton told reporters that once commercial viability is proven, they will apply with DOE a production license of  25 years to deve-lop the Malolos oil field in Barangay Olango.

CIMP Country Mana-ger Vladimir Gerchikov also disclosed that they are set to start drilling in the next few days as land lease negotiations and site construction have already started in Barangay Montpeller, Alegria.

Labios said that the oil field in Aloguinsan has a big potential.

G2G successfully perforated and flow tested two oil-bearing sandstones in Malolos-1.

Oil was produced on short-term test at indicative production rates of between 100 and 200 barrels of oil per day (bopd). Oil from the lower sandstone also flowed to just below surface, the company said.

Labios said that CIMP is also hoping that with the new technology, it can drill deeper up to 1,000 meters in the oil field in Alegria.  (FREEMAN)