The Department of Energy (DOE) 7 has confirmed that preparations are underway for the revival of oil and gas exploration in Alegria, Cebu, as officials push to strengthen the region’s long-term energy supply amid recurring power issues.
Site Inspection and Preparations
DOE 7 Director Renante Sevilla stated that permit processing, environmental compliance requirements, and site clearing operations are ongoing for the planned reopening of the Alegria Oil and Gas Field. The project will be handled by Texcal Energy, which recently took over as the contractor for the field.
Sevilla noted that officials from the national and regional DOE offices visited the Alegria site on Wednesday, May 20, 2026, to inspect the area and assess preparations for the project’s revival. Among those present were DOE Undersecretary Alessandro Sales, representatives from the Provincial Government, Alegria local officials, and members of the Provincial Committee on Energy.
Local Government Concerns
Sevilla explained that the contractor is eager to begin production operations, but several regulatory requirements still need to be completed. He highlighted that local officials raised concerns during consultations, particularly over the lack of updates during previous exploration activities. “The mayor wants the LGU to be directly involved and informed about developments concerning the oil field,” Sevilla said.
Oil and Gas Reserves
Initial DOE estimates indicate that the Alegria field contains approximately 27.93 million barrels of oil in place, with around six million barrels considered recoverable. The field also holds an estimated 9.42 billion cubic feet of natural gas reserves, of which 6.6 billion cubic feet are believed to be recoverable.
Sevilla emphasized that the natural gas component could support power generation in Cebu as the Visayas grid continues to face supply issues caused by outages in several major power plants. He added that the contractor is studying the possibility of establishing a mini-refinery in Cebu to produce diesel fuel locally. “So, it is a very, very good development as far as Cebu,” Sevilla said.
Visayas Power Situation
The planned revival comes as the Visayas grid continues to face recurring Yellow Alerts due to insufficient operating reserves and outages affecting major power plants. Sevilla earlier confirmed that several generating units, including facilities operated by Therma Visayas Inc. and Panay Energy Development Corp., remain under forced shutdown because of mechanical damage. Some affected units are expected to resume operations by July or August.
Despite the outages, Sevilla said the DOE continues to coordinate with the National Grid Corp. of the Philippines, power generators, and distribution utilities to manage the Visayas power situation.
Renewable Energy Push
Sevilla noted that the DOE is also promoting renewable energy projects, including offshore wind, solar, geothermal, hydroelectric, and battery energy storage system developments. According to Sevilla, the Visayas grid currently operates on an energy mix of about 50 percent renewable and 50 percent conventional sources such as coal. He said the revival of the Alegria Oil and Gas Field could become part of Cebu’s long-term energy strategy if production plans materialize within the year.
