Oil discovered in south Cebu

In a similar report to the one above DENR 7 have asked Gas2Grid to submit an Environmental Impact Assessment Survey
report (EIAS) to determine if the ongoing oil drilling operations can affect the surrounding communities within the area.

http://www.ptvnews.ph/bottom-news-l...to-monitor-oil-drilling-in-southern-cebu-town

I distinctly recall BHP having to do the same in Liverpool Bay, just offshore Blackpool.

Again from the same news source....for the evironmentalists out there

Safety Measures

"Meanwhile, the Cebu Provincial Capitol assured the environmentalists that safety measures for the oil exploration in Aloguinsan will be implemented so that there will be no harmful effects to the environment, said Vice Gov. Agnes Magpale.

Three groups filed a petition dated Jan. 10 before the Provincial Government urging officials to stop the oil drilling because it will harm the environment.

These include Philippine Earth Justice Center, Inc., Freedom from Debt Coalition-Cebu and Central Visayas Farmers Development Center.

The petition was addressed to Gov. Hilario Davide III, Vice Gov. Agnes Magpale, and the provincial board members.

The petitioners said oil is a fossil fuel, which is a “major driver” of climate change."

This mayor seems pretty upbeat to me....

"The Department of Energy (DOE) Visayas said on Thursday it has no idea about the report of an oil discovery in Cebu, dubbed as Malolos-1 oil.

DOE Visayas Director Antonio Labios said any oil discovery should have been announced by the President.

However, Dennis Morton of Australian firm Gas2Grid said they applied with the DOE (in Manila) for the declaration of the oil discovery as the first step in appraising and developing the Malolos oilfield.

Morton said the DOE approved their application, which will lead to additional minimum period of 12 months to flow test the well and establish commercial production.

Positive effects
Following the completion of the flow test, and with the DOE’s approval of commercial status, the Malolos oilfield will enter a 25-year production phase to supply power to distribution utilities, he said.

Labios said oil and natural gas deposits are possible under Cebu soil as evidenced in the natural gas found in La Libertad, Bogo City, which supplies one megawatt daily to the Cebu Electric Cooperative (Cebeco) 2.

While coal-fired power plants sell power to distribution utilities at more than P7 per kilowatt hour (kwh), the natural gas in Bogo City is sold to Cebeco 2 at only more than P5 per kwh.

Labios said Cebu is located within the “Visayan Basin,” where oil and natural gas are present.

He said a landowner may get royalties if the oil or gas deposit is found on his property.

Aloguinsan can expect positive effects from the oil discovery like increased revenues and more jobs available to townsfolk, said Vice Mayor Augustus Ceasar Moreno."

http://www.sunstar.com.ph/cebu/loca...cial-denies-knowing-oil-discovery-cebu-322453

Oh ye of little faith.

Another upbeat report. This project is ongoing and is well established, going through the classic early stages. Its been on the go since 2005. Seems they are ready to move on to the next stage. It might yet be the enviromentalists that have the final say, though. That ring a bell with back here in the UK?


"Although some residents in the barangay complained of noise at night when the foreign oil firm was still actively operating, the barangay chief said the benefits of the oil exploration far outweigh the inconvenience it has caused.

Carang said the foreign firm employed some of her constituents to work in the oil exploration and the stores near the area also enjoyed brisk sales.

Meanwhile, Aloguinsan Mayor Augustus Caesar Moreno is confident the report about the oil discovery is really true saying that he already know about the presence of oil in the town.

"Kahibawo naman ko daan nga naay oil although subject to test sa quality and its commerciality," Moreno told The FREEMAN.

Once operational, the local government units involved - from the province, municipality down to the barangay - will get their respective shares of the gross revenues, he added.

Since Gas2Grid is still doing exploration works, the firm is not yet required to pay taxes to the local government but Moreno said that once the firm starts extracting oil, it has to pay taxes to the LGU.

"If you have to weigh bitaw unsa'y kaayuhan ug unsay negatibo, daku kaayo og bintaha oy og madayun na siya," Moreno said.

When the exploration started in 2005, Moreno said Gas2Grid employed around 50 locals and another 30 locals during the testing stage. The company also extended assistance to barangays by repairing and improving existing school buildings, health centers and day care centers.

Australian firm Gas2Grid Limited, through its website, earlier announced that the DOE has recognized the oil exploration in Aloguinsan as an oil discovery. The firm also announced that because of the discovery, the energy department has extended the firm's service contract, SC 44, for one year. The extension of SC 44 will take effect on January 28 and will last for 12 months."




http://www.philstar.com/cebu-news/2014/01/13/1278282/aloguinsan-locals-welcome-oil-news

I did read the other day that this particular field may not be quite as economical to develop as hoped. Apparently the oil is mixed with a considerable amount of sand.

It will be as sand is the reservoir rock. Below the surface the oil sits between the sand grains. There are simple measures that can be taken to filter out sand production. Sand and sandstone are the most common oil reservoir rocks.

On economics of development. Nobody knows, until they actually produce the fluid out of the ground, how fruitful it will be as a venture but Gas2Grid will have the best info to hand and will be the first to know on any info that will affect its viability. If they thought that sand production would be a big enough concern then they would not be continueing with the project.

From the Geological Society of the Philippines. The complex origin of the Philippine Archipelago.

http://www.academia.edu/506513/New_...nd_Implications_to_the_Philippine_Mobile_Belt