Service Contract 49 - Alegria Oil Field

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The map below comes from the following document.



SC 49 covers the bottom quarter of Cebu island.



Barangay Montpeller in Alegria appears below.



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China firm to start oil drilling in Alegria
March 4, 2014, Tuesday | by: Xerxes Alkuino

http://www.cebu.gov.ph/news/china-firm-to-start-oil-drilling-in-alegria/

A Chinese firm, China Internal Mining Petroleum Company Ltd. will start its oil exploration project in Barangay Montpeller, Alegria, south of Cebu in the next few months.

Department of Energy (DOE) 7 Director Antonio Labios said the area has potential oil deposits. This was based on the previous oil drilling activities in the same area but were not able to reach the deeper ground, which a large number of oil deposits may be found.

“They hope that with the modern technology they could go as deep as more than 1,000 to 2,000 meters deep,” he told the media in an interview on Monday, March 3.

Vladimir Gerchikov, the company’s country manager said, they have already acquired a service contract from the DOE. The company is already in the process of entering a lease contract for the oil field in Alegria.

Gerchikovand company briefed Governor Hilario P. Davide III and Vice Governor Agnes Magpale on Monday, March 3 about the project in a meeting arranged by Dir. Labios.

The officials of the municipality of Alegria, lead by Mayor Verna Magallon, were also present during the meeting at the Capitol.

Gerchikov said they are asking the governor’s and the community’s support on the “major project,” which would highly benefit the province.

Governor Davide supported and wished luck for the company in its oil drilling activity. The governor said his main concern is only the safety of the environment and of the local folks.

“Angimportantegyudparanako as governor, nga no adverse effect kinisaatong environment and the people in the municipalities where they are drilling are protected gyud,” the governor said.


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China International Mining Petroleum Company Limited Key Developments
China International Mining Petroleum Company Limited Receives Approval Plan for Development of SC49 Block
Dec 20 17

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=102222579

The board of directors of the Polyard Petroleum International Group Limited announced that on 19 December 2017, the Department of Energy of the Government of the Republic of the Philippines has granted the approval of the Plan of Development for oil for the SC49 Block to China International Mining Petroleum Company Limited. The approval of the Oil POD will serve as the basis for the Joint Declaration of Commerciality.

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Alegria, Cebu rejoices: We struck gas!
By: Futch Anthony Inso, Jose Santino Bunachita - @inquirerdotnet Inquirer Visayas / 08:32 PM March 16, 2018

CEBU CITY – Commercial quantities of natural gas and oil resources have been found in the southern town of Alegria, Cebu that can last for 19 years.

The Department of Energy (DOE) and its partner, a Chinese exploration firm, were set to start production of the on-shore gas and oil mining site in Alegria, a 4th class municipality located more than 110 km from Cebu City.

The news was welcomed by Alegria Mayor Verna Magallon who saw the development as an opportunity for the town to improve economic activities and generate more jobs.

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Last March 14, Energy Secretary Alfonso Cusi declared that the Alegria Oil Field, located in Barangay Montpeller, has commercial quantities of natural gas and oil resources that can last until 2037.

Cusi made the pronouncement after a ceremonial signing of the Joint Declaration of Commerciality (JDC) between the DOE and service contractor China International Mining Petroleum Company Limited (CIMP CO. Ltd).

In a press release posted on its website, the DOE said exploration and drilling services on the oil field by CIMP started as early as 2009 and was covered by Petroleum Service Contract (SC) No. 49.

An estimated 27.93 million barrels of oil (MMBO) with a possible production recovery of 3.35 MMBO or a conservative estimate of 12 percent of total oil in places (reserves) were found.

For natural gas, about 9.42 billion cubic feet (bcf) reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70 percent of total natural gas in places/reserves.


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Read more: http://newsinfo.inquirer.net/975936/alegria-cebu-rejoices-we-struck-gas#ixzz5A52iwuYz
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook


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Chinese drilling operators and geologists brief DOE officials at the Alegria oil field in Alegria, Cebu province

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SOUTHERN CEBU TO PRODUCE OIL AND NATURAL GAS
March 14, 2018

https://www.doe.gov.ph/press-releases/southern-cebu-produce-oil-and-natural-gas

Department of Energy (DOE) Secretary Alfonso G. Cusi today declared the Alegria Oil Field in Southern Cebu to have commercial quantities of natural gas and oil resources.
(Taguig City). Department of Energy (DOE) Secretary Alfonso G. Cusi today declared the Alegria Oil Field in Southern Cebu to have commercial quantities of natural gas and oil resources.

The pronouncement was made after the ceremonial signing of the Joint Declaration of Commerciality (JDC) between the DOE and the service contractor China International Mining Petroleum Company Limited (CIMP Co. Ltd.) on 14 March 2018 at the Hyatt Hotel-BGC in Taguig City.

CIMP Co. Ltd. holds Petroleum Service Contract (SC) No.49, which covers the Alegria Oil Field.

Signing the declaration along with Cusi was CIMP Co. Ltd. Chair Lam Nam, while DOE Undersecretary Donato D. Marcos and CIMP Co. Ltd. Chief Executive Officer Eric Lai served as witnesses.

Exploration and drilling activities on the oil field by the service contractor started in 2009.

By 2016, the DOE and CIMP Co. Ltd. jointly established that the oil field contained commercial quantities of natural gas upon its discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.

The DOE and CIMP Co. Ltd. discovered an estimated 27.93 million barrels of oil (MMBO) with a possible production recovery of 3.35 MMBO or a conservative estimate of 12% of total oil in place/reserves.

For natural gas, about 9.42 billion cubic feet (bcf) reserves were found, with the recoverable resource estimated at 6.6 bcf or about 70% of total natural gas in place/reserves.

Based on the development plan crafted after the initial testing, the natural gas and oil production of the field may last until 2037.

The JDC outlined the roles and responsibilities of CIMP Co. Ltd., particularly its compliance with all conditions stated in the approved Plan of Development dated 19 December 2017.

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Cebu's Alegria Oil Field can power 60-megawatt gas plant – DOE
Energy Secretary Alfonso Cusi says the Alegria Oil Field would have two wells ready to produce a total of 360 barrels per day

Rappler.com
Published 7:20 PM, March 18, 2018
Updated 7:20 PM, March 18, 2018

https://www.rappler.com/business/198448-cebu-alegria-oil-field-potential-doe

MANILA, Philippines – The Alegria Oil Field in southern Cebu can power a 60-megawatt (MW) gas plant, said Energy Secretary Alfonso Cusi.

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For oil resources, Cusi said the Alegria Oil Field would have two wells "ready to produce 180 barrels each every day, for a total of 360 barrels per day."

"It will help the economy because it will support the local industry using crude oil. That will be a big help even though it's only 360 barrels because it is still a positive development," the energy chief added.

The contractor, China International Mining Petroleum Company Limited (CIMP), had discovered about 27.93 million barrels of oil (MMBO), with a possible production recovery of 3.35 MMBO or a conservative estimate of 12% of total oil in place or reserves.

CIMP holds Petroleum Service Contract (SC) No. 49, which covers the Alegria Oil Field. (READ: Pangilinan still optimistic over oil hunt in West Philippine Sea)

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From: https://www.facebook.com/thefreemannews/photos/a.140084012725307.30737.125657870834588/1961111827289174/?type=3&theater

May 11, 2018

LATEST: Contrary to reports, China International Mining Petroleum Company Limited (CIMP Co. Ltd.), which operates the Alegria Oil Field in Southern Cebu, did not stop its operation. Department of Energy-7 head Saul Gonzales clarifies it only halted one of its six oil wells, the P8, temporarily for clean-up.

The Alegria Oil Field, which wil be launched on May 19, is expected to produce 6.6 billion cubic feet of methane gas and 3.3 million barrels of liquid crude petroleum in 29 years, which will bring about P1 trillion in revenues. Methane gas and liquid crude petroleum that have commercial quantities were discovered in Alegria after Palawan. | via Mitchelle Palaubsanon

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From: https://www.facebook.com/sunstarcebu/photos/a.162049727175929.30546.162005507180351/1675290465851840/?type=3&theater&ifg=1

The forum's extension: https://www.facebook.com/groups/rpdefense/permalink/1669922973093543/

President Rodrigo Duterte dials the valve of one of the Polyard wells and the pipe (left side) lights up which signals fuel is coming out. The oilfield is located in Alegria, Cebu. Photo by Arni Aclao.

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Duterte opens Cebu oil field today
Updated May 20, 2018, 7:26 AM

By Minerva BC Newman

https://news.mb.com.ph/2018/05/19/duterte-opens-cebu-oil-field-today/

ALEGRIA, Cebu – President Duterteis expected to lead the will lead ceremonial commencement of oil and gas production of the Alegria Oil Fields.

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Duterte is scheduled to open the ceremonial valve of the Polyard-3 Well site in Barangay Montpeller, Alegria town.

Engr. Saul Gonzales, Department of Energy-Region 7 (DOE-7) OIC regional director, said

Alegria town is an oil field of natural gas and crude petroleum deposits with commercial quantities and production may last until 2037.

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Gonzales said Energy Secretary Alfonso Cusi and China International Mining Petroleum Company Limited (CIMP Co.Ltd) Chairman Lam Nam signed the joint declaration of commerciality on March 14, 2018, in Taguig City to formalize the service contract of CIMP Co. Ltd over the AlegriaOil Fields.

Gonzales said exploration and drilling activities of CIMP Co. Ltd. on the oil field started in 2009.

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Gonzales said CIMP Co. Ltd has now the option to sell or to produce power or electricity for domestic use by connecting to the distribution grid of CEBECO (Cebu Electric Cooperative) or to the transmission grid of the National Grid Corporation of the Philippines (NGCP).

When the CIMP Co. Ltd shall have produced the power, it gets 40 percent of the net sales, while the Philippine government gets 60 percent share based on Presidential Decree No. 87 (the Oil Exploration and Development Act of 1972).

Gonzales said the crude oil and gas in commercial quantity is expected to spur economic growth in Alegria, as well as the whole Cebu province and even the entire country.

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From: https://www.philstar.com/the-freeman/cebu-news/2018/03/16/1797306/alegria-southern-cebu-28m-barrels-oil-found#0v3pLqbj8UphHpoT.99

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The service contractor began its exploration and drilling activities on the oil field in 2009 by virtue of Petroleum Service Contract No. 49, which covers Alegria.

Seven years later, in 2016, the DOE and CIMP Co. Ltd. jointly established that the oil field contained commercial quantities of natural gas upon discovery of oil accumulation in the adjacent hydrocarbon traps within the Alegria underground area.

Based on the development plan crafted after the initial testing, the natural gas and oil production on the field may last until 2037.

The JDC outlined the roles and responsibilities of CIMP Co. Ltd., particularly its compliance with all conditions stated in the approved Plan of Development on December 19, 2017.

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Shell keen on buying Alegria oil output
posted October 05, 2018 at 08:20 pm by  Alena Mae S. Flores

http://manilastandard.net/business/power-technology/277231/shell-keen-on-buying-alegria-oil-output.html

Pilipinas Shell Petroleum Corp. has expressed interest to purchase crude from the Alegria oil and gas discovery in Cebu, according to the parent firm of the project proponent, Polyard Petroleum International Group Ltd.

Polyard disclosed to the Stock Exchange of Hong Kong unit China International Mining Petroleum Co. Ltd. received a letter of intent from Shell, the country’s second largest oil company.

“Pursuant to the letter of intent, CIMP may sell and PSPC may purchase the crude oil produced by CIMP from the Alegria Oil and Gas Field,” Polyard said.

Polyard cited the letter of intent in which an initial analysis of the quality of the crude oil produced by CIMP was found to be acceptable as a feedstock to Shell’s refinery, “but it is subject to further detailed analysis.”

Shell owns a 110,000 barrel-per-day refinery in Batangas. Shell officials did not comment as of press time.

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CIMP acquired an 80-percent stake in the participating interest of the SC 49 project and became its operator in July 2009. The contract covers a 25-year production period.

Energy Secretary Alfonso Cusi earlier said the Alegria oil field can power up to 60 megawatts of natural gas-fired power plant and produce up to 360 barrels of oil per day.

“There are two wells that already produced 180 barrels per day. They are ready so we are just scheduling when will be the first delivery, first output,” Cusi said.

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Polyard to purchase oil from Alegria field
posted January 28, 2019 at 08:05 pm by
Alena Mae S. Flores

http://manilastandard.net/business/power-technology/286407/polyard-to-purchase-oil-from-alegria-field.html

Polyard Petroleum International Group signed an agreement on Jan. 10 to purchase oil from the Alegria onshore discovery in Cebu.

Polyard unit China International Mining Petroleum Company Ltd., operator of service contract 49, owns majority of the Alegria discovery in South Cebu.

“Currently, GA Oil is mobilizing its oil trucks to prepare for a hauling of at least 150 barrels of crude oil on a daily basis at the end of January,” Polyard said.

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Looking for oil in Northern Cebu
May 30, 2019

https://www.sunstar.com.ph/article/1807934

AFTER the successful oil exploration off the shores of Alegria in southwestern Cebu, the Department of Enegy (DOE) has announced that it is currently looking for oil in the northern part of the province.

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In Alegria, China International Mining Petroleum Limited (CIMP) has eight oil wells in Barangay Montpeller, but is only using three.

Most of the crude oil’s buyers are from Luzon, said DOE Visayas officer-in-charge Jose Rey Maleza.

The crude oil still needs refinement before it can be sold to the public as usable products, such as gasoline, diesel and various forms of petrochemicals.

Maleza said the local government units will benefit from the sales of crude oil as they will get a percentage of the operators’ total sales.

Officials of the DOE and CIMP in March 2018 signed a JDC.

The DOE, in a statement, said that some 27.93 million barrels of oil and about 9.42 billion cubic feet of natural gas reserves were found in Alegria, after drilling and exploration activities that began in 2009. CIMP’s development plan for Alegria gained the DOE’s approval last Dec. 19, 2017.

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