by FFE PH News Staff

An Australian oil firm may have possibly hit a gold mine when they discovered a new oil deposit in the town of Aloguinsan, Cebu.

The Department of Energy (DOE) confirmed that Gas2Grid has discovered a new oil field and gave the company 12 months starting January 2014 to explore the potentials of the field.

Gas2Grid will shoulder the expenses needed to explore the new field and study its commercial viability. If the oil is found to fit commercial use, then the company will seek approval for a 25-year production phase. In addition, the firm will check if the oil is compatible with the refineries in the country.

This comes as good news as the department also said this may solve the country’s heavy dependence on oil importations. DOE Region 7 Director Antonio Labios said ‘It will increase our self-sufficiency in energy. That will lessen our dependency on imported energy.’

Gas2Grid has started petroleum exploration in the area back in 1960. In 2004, the firm has started drilling for oil in the area known as Malolos-1. Acting Mayor of Aloguinsan Augustos Moreno hopes that the discovery will help boost the town’s economy.

DOE and the local government of Aloguinsan said they will make sure the exploration will not harm the environment.