In Aloguinsan Australian firm heightens preparations for oil drilling

CEBU, Philippines - Preparatory measures needed prior to the commercial testing have been started by the Australian firm that has been exploring the oil production in Aloguinsan town. 

“Gas2Grid has already started its mobilization which will last for one to two weeks. They are preparing their personnel and equipment,” said Department of Energy Visayas Director Antonio Labios.

Labios confirmed the earlier announcement made by Australian company Gas2Grid in a statement posted via its website www.gas2grid.com dated April 11.

“Early next week, the well clean-out will commence and the swabbing unit will arrive…to swab liquids for a period of about 2 weeks from the well,” Gas2Grid statement read.

Actual flow testing, according to Labios, will either take place late April to early May.

The DOE official stressed that this oil exploration venture does not require an environmental compliance certificate (ECC).

“This particular project was issued a certificate of non-coverage from the Department of Environment and Natural Resources. So they are not required to secure an ECC,” Labios explained.

An extension of one year starting January 2014 on Service Contract 44 covering the oil exploration in southwestern Cebu was issued by DOE for Gas2Grid to continue its operation for Malolos 1 Oil Field in Rig 2 located in Barangay Olango, Aloguinsan town.

The company earlier reported a “contingent resource” of oil in the two well bores it made in Aloguinsan with a “low estimate” (1C) of 6.8 million barrels and a “high estimate” (3C) of 68.1 million barrels, with a “best estimate” (2C) of 20.4 million barrels of “total oil initially in place.”

The local government unit of Aloguinsan has expressed support for this project as it would gene-rate jobs as well as revenue for the town.

Environmentalists, however, cautioned that this could contribute to climate change because of carbon footprint and exhaustion of stored fossils in the country.  (FREEMAN)