A stalled energy promise is moving back into motion as the national government revives plans to restart operations at Cebu’s Alegria oil field, signaling a renewed push for domestic fuel production.
Efforts to revive oil production in Cebu are gaining momentum as the government moves to restart operations at the long-idled Alegria oil field.
The initiative follows the approval of a new petroleum service contract by President Ferdinand Marcos Jr., marking another attempt to tap local energy resources amid ongoing supply concerns.
During a recent session of the provincial board, energy officials provided updates that pointed to cautious optimism rather than immediate production.
Department of Energy (DOE) Visayas Director III Renante Sevilla told lawmakers that Service Contract (SC) 89 has been awarded to Texcal Energy–Mahato Inc., an Indonesian firm that will take over the project.
“We would like to present to you… that the President has approved the Alegria Oil Exploration Project,” Sevilla said in his briefing.
The new contract replaces the previous operator, China International Mining Petroleum Company Limited (CIMP), whose agreement was terminated after operations stalled in recent years.
For Cebu officials, the restart signals both opportunity and scrutiny, as the project returns after years of delays and setbacks.
Sevilla said earlier issues stemmed largely from coordination gaps with local stakeholders.
“We make sure na properly coordinated gyud ang LGU and other concerned stakeholders. Kay before mao manay problema,” he said.
This time, the Department of Energy said it is prioritizing dialogue with local government units before any drilling or production begins.
Meetings between the contractor, DOE, and local officials are expected in the coming days as groundwork discussions move forward.
“Within the year or this semester, kaya… karon naa lang gyud issues… Next week makig-dialogue pa ta with the LGU together with the awarded contractor,” Sevilla added.
Officials clarified that no production will begin until all concerns are resolved.
First confirmed to contain petroleum deposits in 2018, the Alegria oil field remains one of the country’s few onshore oil discoveries.
Department of Energy data show the site holds an estimated 27.93 million barrels of oil in place.
However, only about 3.35 million barrels—around 12 percent—are considered recoverable.
The field also contains about 6.6 billion cubic feet of natural gas, which could support future power generation if developed.
“Of course, timely kaayo kay kuwang naman ta sa oil. So kani locally produced,” Sevilla said, highlighting the importance of domestic energy sources.
Despite its potential, the project has faced repeated interruptions, including pandemic-related delays that contributed to the termination of the previous contract in 2023.
Under the new agreement, authorities are adopting a more cautious approach, with stakeholder engagement and preparatory work required before any extraction begins.
Revenue-sharing arrangements between the national government and host communities will remain in place, offering potential economic benefits once operations proceed. (SBA)
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