Manila, Philippines – Finally, Gas2Grid formally announced the approval by the Energy Department of its application to declare the Malolos-1 oil well on the shore of Cebu as an “oil discovery.”
Department Of Energy (DOE) announced that this new inland oil deposit discovered in Cebu, will possibly turn the country as a potential oil producer in the future.
An Australian firm Gas2Grid Ltd. A company assigned by the energy department to explore potential oil deposits in the country has drilled for a decade and It was this firm found the oil at Malolos-1 well. And was given an additional 12 month extension of its Service Contract (SC)-44 to further develop the well.
“The Service Contract 44 (of Gas2Grid) is a boost to the country’s energy security efforts as
It is currently dependent on imports and we will provide necessary support to advance its development,” said Department of Energy secretary Jericho Petilla.
The company is currently in the final phase of tests and gathering of technical reports. It will take around 6 more months to formally start the production when everything is ready according to the Department Of Energy.
Gas2Grid also said that “it is also viable to put up a power station close to the oil well. “Electricity from a power station located within SC 44 would be sold on the island of Cebu, which has a total population of just under 4 million people.”
Another advantage of the onshore Malolos oilfield is its proximity to land which makes transporting its products and establishing a pipeline highly feasible and commercially viable. Most of the oil fields in the country are located far offshore and required relatively bigger investments in terms of infrastructure.
The exploratory drilling contract for the Malolos-1 well was awarded in January 2004. SC 44 has been calculated by Gas2Grid to be capable of producing oil in the range of 4 to 42 million barrels with “most likely” assessment at 12 million barrels.