Oil found off Cebu; more tests needed

By Riza T. Olchondra

Philippine Daily Inquirer

9:14 am | Friday, January 10th, 2014

MANILA, Philippines—An Australian firm’s recent discovery of oil in Cebu gives the Philippines additional energy prospects, the Department of Energy (DOE) said, cautioning, however, that it remained to be seen if the oil find is substantial.

“There is a new prospect, yes,” said Energy Undersecretary Ramon Oca in a phone interview. “But let’s put into perspective that there is no reason to get excited for now. The prospect may prove large later on (after more drilling) but there is also a chance it would not.”

Australian company Gas2Grid announced on its website the approval by the DOE of its application to declare the Malolos-1 oil well off the shores of Cebu province as an “oil discovery.”

Short-term tests in the sandstone areas of Malolos-1 produced “indicative rates” of between 100 to 200 barrels of oil per day.

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Tags: Australia , Cebu , Energy , oil and gas-upstream activities , oil discovery , Philippines - Regions

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