Australian firm to start commercial flow testing of oil find in Aloguinsan, Cebu-A A +A
Tuesday, April 15, 2014
CEBU CITY -- An Australian oil exploration firm will start actual commercial flow testing of its oil find in the southern Cebu town of Aloguinsan late this month up to early May, a Department of Energy (DOE) official said.
DOE-Visayas Director Antonio Labios said Gas2Grid has already started its mobilization which will last for one to two weeks.
The flow testing will determine the commercial viability of the oil find, Labios said.
Labios confirmed the earlier announcement made by Australian company Gas2Grid in a statement posted via its website www.gas2grid.com dated April 11.
Labios also said the 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,” he said.
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” of 6.8 million barrels and a “high estimate” of 68.1 million barrels and a “best estimate” of 20.4 million barrels of “total oil initially in place.”
Aloguinsan town officials have expressed support for the oil exploration project as it would generate jobs for residents and earn revenues for the town. (PNA)