OIL DRILLING SET. Viable commercial
oil will soon be hauled out from the Cabilao and Argao
oil fields by Australian-based Otto Energy Ltd. after
a successful seismic survey conducted last June confirming
the presence petroleum deposits at the Bohol-Cebu seas.
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Drilling
of oil deposits at the Bohol Strait is scheduled to
start within the next two years.
The presence of commercially and economically viable
petroleum resources between Bohol and Cebu was finally
confirmed by the DoE and Otto Energy Ltd., the Australia-based
company contracted by the Philippine government to explore
oil and natural gas deposits in the Visayan basin and
offshore Palawan.
In
an advisory given to the DoE by Otto Energy, the latter
reported that it is raising $11.02 million to fund the
oil drilling off Cabilao Island in Loon town including
the Argao, Cebu side.
Otto
Energy owns and controls NorAsian Energy Ltd., which
conducted the controversial seismic survey at the Bohol-Cebu
seas last June.
Although
the drilling was set to start earlier, Otto Energy revised
its drilling program after completing the seismic exploration
here.
The DoE has likewise approved the revised exploration
work programs giving the Australian energy firm until
March 2009 to drill the first wells at the Bohol-Cebu
seas.
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By
August 2009, Otto Energy will commence drilling for the Marantao
prospect in offshore Palawan.
These
deadlines, Otto Energy's advisory stated, are in line with
recent developments in the company's overall exploration program,
particularly the completion of its seismic surveys over Service
Contract (SC) 50 at Calauit oil field, SC 51 Argao-Cabilao
and SC 55.
To
fund the oil drilling on these three Philippine service contracts,
Otto Energy will be issuing an additional 36.73 million shares
of stocks.
Deposits
in the Argao and Cabilao area are confirmed to contain up
to 270 million barrels (MMbbls) of recoverable oil in conventional
sandstone reservoirs, Otto Energy's report stated.
ENVIRONMENTAL
EVALUATION
In its advisory to the DoE, Otto Energy admitted that it had
to stop further oil seismic survey at the Bohol Strait after
non-government organizations (NGOs), fisherfolks and local
officials challenged the seismic survey.
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The
3-dimensional seismic survey off the Maribojoc, Tagbilaran
and Panglao Island coasts would have provided a detailed
evaluation of existing DoE data regarding the presence
of gas deposits in the area.
The
oil exploration at the Bohol-Cebu Strait was finished
ahead of schedule, according to the Australian firm
which also reported that they achieved their survey
goals below their budget.
Otto
Energy claimed in their report that they have complied
with all permit requirements with the DoE and the Department
of Environment and Natural Resources (DENR) before and
during the survey.
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The
company also said that the 2D data that would have been acquired
from completing the 2D seismic survey at Bohol Strait "is
not critical to the drilling plans" for the Cabilao and
Argao oil deposits.
"The
next step in the exploration program is to conduct an extensive
environmental survey in the Cebu-Bohol Straits to prepare
for drilling the Argao prospect," the company said.
TOURISM
VS. OIL
Environmental
Legal Assistance Center (ELAC) executive director Atty. Raul
Barbarona, in an interview with the Chronicle yesterday said
it is time that a clear stand be made by the tourism sector
of the province regarding the oil drilling.
Barbarona
said safety concerns should be addressed by the DoE and DENR
when Otto Energy goes into the process of acquiring an Environmental
Compliance Certificate (ECC) and Environmental Impact Statement
(EIS).
Based
on experience, oil spills from oil rigs and drilling cannot
be avoided, he said.
Moreover,
according to Barbarona, accidents can still happen during
the operation of oil wells.
All
these could harm the marine environment of the Bohol Strait,
he said.
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