Energy Secretary Sharon Garin stated that the timeline for Alegria’s planned mobile oil refinery remains uncertain as she needs to verify the status of Texcal Energy’s contract and work plan.
Garin highlighted that refining the produced oil is essential for economic benefit, while the Department of Energy conducts geodetic and seismic surveys in the Visayas to assess broader energy security potential.
Alegria municipal officials noted environmental and local impact concerns within the Tañon Strait protected seascape, while requesting a copy of the new service contract to review its obligations.
THE timeline for the planned mobile oil refinery in Alegria, Cebu, remains uncertain as Energy Secretary Sharon Garin said she needs to verify the status of the project’s contract and work plan.
Garin told reporters in a sideline interview at the Cebu Provincial Capitol on Monday, Oct. 12, 2026, that she had yet to review the proponents’ work plan for the refinery.
“I have to check the status ng bagong kontrata na ‘to (new contract),” Garin said when asked for an update on the oil project.
She said the proponents had previously reported their plans to establish the refinery, but she had yet to examine the details of their work plan.
“Nag-report na sila na ‘yun ‘yung plano nila, but I haven’t seen the work plan kung ano ‘yung ano, pero naka-report na sila a few months ago pa,” she said.
(They have reported that this is their plan, but I haven’t seen the details of the work plan. They already reported it a few months ago.)
Asked when the mobile refinery would be completed, Garin said she needed to verify the project’s current status.
“I have to check on that kung ano na ‘yung status niya (what is the status),” she said.
Garin said the oil would need to be refined for the project to deliver economic benefits to Cebu and the country.
“Ngayon kasi, kahit may production hindi nila ma-refine, I think, they have to store lang ‘yun. Pero para talagang makatulong sa bayan at sa Cebu, it has to be refined somehow,” she said.
(Even if they are producing oil now, they cannot refine it, so I think they have to store it. But for it to truly benefit the country and Cebu, it has to be refined somehow.)
DOE’s surveys
Meanwhile, the Department of Energy (DOE) is conducting geodetic and seismic surveys in the Visayas to assess the region’s oil and gas potential, including areas beyond Alegria.
Garin said the surveys could identify other areas in Cebu and the Visayas with potential oil or gas deposits, helping strengthen the country’s energy security.
“So, makikita natin, baka hindi lang sa Alegria, baka may other areas pa, ah, around Cebu or around Visayas na meron tayong oil or gas, para magkaroon talaga tayo ng energy security na totoo, na atin ‘yung source at dito po sa ating area,” she said.
(So, we may find that there are other areas beyond Alegria, possibly elsewhere in Cebu or the Visayas, with oil or gas deposits. This would help us achieve genuine energy security by having our own energy sources here in our region.)
Garin expressed hope that the surveys would identify additional areas with oil and gas potential.
“So, ah, Alegria, hopefully there will be more Alegrias in the future,” she said.
In a report published by SunStar Cebu on Sept. 26, the DOE approved Service Contract (SC) 89 for Texcal Energy Mahato Inc. in April 2026.
Operations
Alegria Municipal Planning and Development Officer Jesus Rey “Tetu” Cavalida said the previous operator, China International Mining Petroleum (CIMP), developed several production stations in Alegria in 2009 but did not operate at full scale. CIMP operates under a separate service contract.
According to Cavalida, CMIMP has to transport oil by truck to Bataan for refining. Under SC 89, Texcal plans to establish an on-site refinery in Barangay Montpeller.
Cavalida said local processing could keep more economic activity in Alegria instead of sending crude oil elsewhere.
The Municipality has yet to receive a copy of SC 89 from the DOE and wants to review the contract’s coverage, obligations and limitations.
Cavalida added that the local government is also proposing the construction of a finger port in Barangay Legaspi near the oil development area.
Environmental concerns
Alegria is among the municipalities within the 534,589-hectare Tañon Strait, a protected seascape recognized as a feeding, breeding and resting ground for dolphins and whales.
The 161-kilometer channel separating Cebu and Negros islands is home to 14 cetacean species, most of which are found off Bais City in Negros Oriental.
Alegria has four coastal barangays — Madridejos, Santa Filomena, Poblacion and Legaspi — where families depend on fishing for their livelihood. Some fishers bring sardines home to dry or use as bait for catching tuna and swordfish.
Cavalida acknowledged that development could also have negative consequences for the community and the environment.
“For every development, naa gyud na’y (there will always be) negative effect, naa gyud na’y (there will always be) collateral damage,” he said.
In a separate report published by SunStar Cebu on April 8, the area was estimated to contain 9.42 billion cubic feet of natural gas, of which about 6 billion cubic feet could be recovered for use as an energy source for the region.
The oil field had been idle for three years before the latest development plans. Previous operations by a Chinese contractor were halted in 2023 following pandemic-related restrictions, according to the earlier report.
Texcal Energy, which is pursuing development under SC 89, reportedly produces up to 7,000 barrels of oil per day at its main site in Indonesia. This figure refers to its operations in Indonesia, not its planned Alegria project. / CDF