02/05/2015 – Cebu City | The Australian Oil Company Gas2Grid has finally declared that Malolos 1 oil well is ready for commercial production. The discovery of oil in Aluguinsan Cebu is the biggest oil discovery in the Philippines and could ease import pressure according to the Department of Energy.
Gas2Grid estimated the deposits from 14 million to 601 million barrels, with the best estimate of 104 million barrels. The country’s consumption is around 260,000 barrels a day.
The country’s only oil producer in Galoc field in offshore Palawan has only around 25 million barrels. The Malolos 1 is a big upgrade from the current state of the country’s oil production.
The company noted that once full production started and oil flows to Philippine market, the domestic oil price could lower by 25% from its current price and 20% decrease in oil import is feasible.
According to Gulfnews, the Service Contract 44 (SC-44) by Gas to Grid is capable of producing oil in the range of 4 to 42 million barrels day, with the “most likely” assessment of 12 million barrels a day.
The Philippines, which rely most of its oil supply from outside producers, mostly from Middle East is hoping to make profit and give more local jobs through the SC-44 project.
The oil company is currently on final phase of tests and gathering of technical report. It will take around 6 more months to formally start the production when everything is ready according to DOE.
Earlier last year, rumors about Mindanao having $1 trillion dollar oil reserve shakes Mindanaoans, but the Department of Energy has not given any comment on the said matter.
Oil explorations are ongoing in several areas especially in Butuan and Liguasan, but positive result has yet to be announced.