Sydney-based
Gas2Grid Ltd. will drill two wells in Carcar City and one in the coastal town
of Aloguinsan within three months, Energy Undersecretary Jose Layug said.
The
company is "bullish" about the prospect of success which could
eventually yield as much as 69 million barrels of oil and 50 billion cubic feet
(1.5 billion cubic metres) of gas, he added.
All of
the Philippines successful oil operations so far have been in deep waters.
"If
oil will be discovered, it will be a game-changer, especially for Cebu,"
Layug added.
He said
it would earn Cebu huge amounts of revenue while helping to lower the country's
large oil imports.
However
he declined to give details until any oil deposits are confirmed.
The
development of onshore oil wells is much cheaper and faster than the offshore
wells that require
drilling
in deep water, Layug said.
"But
it can be more challenging because there are local communities who can
complain," he said, adding that the government and oil company would have
to explain the benefits while minimising the effects of oil production.
Cebu is
known for its tourism industry, built around its many beaches, its export
industries and as a trading centre for the central Philippines rather than for
any mineral resources.
The
Philippines produces 6,000 barrels of oil per day from its offshore oil wells
but consumes 300,000 barrels per day, he said.
Layug
said the country was "underexplored" as far as oil prospects were
concerned and could yield more discoveries.
Source: MSN.Com
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