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 The
Department of Energy has signed a service contract (SC)
with Gas to Grid Pte. Ltd. (G2G) of Singapore which
committed to invest an initial $4 million in Central
Cebu.
The seven-year SC covers 2,415 square kilometers of
onshore development in Central Cebu area within the
Visayas petroleum basin.
The contract area, based on previous drilling activities
done in 1960, contains undeveloped natural gas and oil
reserves. Further drilling and testing activities are
needed to determine the field’s viability.
Energy Secretary Vince Perez and G2G managing director
David Alistair Munns signed the contract.
 "If
found to be commercially viable, the natural gas can be
used to fuel proposed small power facilities in Cebu to
meet the ever increasing power demand in the Visayas,
particularly in the Cebu-Negros-Panay grid," Perez
said.
Perez noted that the potential gas field is located
approximately 40 kilometers west-southwest of Cebu City,
a major city with significant electricity requirements.
G2G has expertise of over 25 years in petroleum
exploration and development in Southeast Asia. It is
also involved in a similar gas-fired power station
development in Australia and hopes to apply the same
experience and technology in the Cebu project.
G2G’s contract could be extended to a 25-year
production phase if oil or gas in commercial quantity is
discovered.
Five exploration wells are expected to be drilled in the
seven-year exploration stage. The first year will be
dedicated to conducting geological and geophysical
studies and drilling of an exploration well.
"Our exploration industry has finally rebounded
with the signing of yet another service contract. We are
optimistic that this renewed interest from foreign and
local exploration firms will be sustained as we get
closer to the March deadline of our first Philippine
Petroleum Contracting Round (PCR-1)," Perez said.
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