No Alegria Oil Field proceeds yet for Cebu, says Gwen Garcia
MANILA, Philippines – Cebu Governor Gwendolyn Garcia said the province has yet to receive its 2018-2019 share of proceeds from the recently discovered Alegria Oil Field.
Besides that, it has been reported that Alegria town itself has only received P100,000 out of the P600,000 it is supposed to receive from the oil field proceeds.
The production of oil and natural gas from the oil field began in 2018.
Based on the distribution of the gross proceeds from the oil field, 70% automatically goes to service contract holder China International Mining Petroleum Company Limited (CIMP) as reimbursement for operating expenses, while the remaining 30% goes to the government.
The government's share is divided further, with 60% of it going to the national government, and 40% among local government units (LGUs): 8% for Cebu province, 18% for Alegria town, and 14% for Barangay Montpeller.
Garcia told reporters that she has asked the Department of Energy (DOE) for a breakdown of the total gross proceeds and CIMP's operating expenses, so she can see how much the host LGUs should really receive.
She also said the Cebu provincial government is looking into invoking Section 291 of the Local Government Code which can prescribe a 40% share for local governments from the proceeds of any government agency or government-owned or controlled corporation in the use and development of national wealth.
"I really believe that the host LGUs – including the barangay, the town, and the province – should be entitled to so much more," said the governor. – Rappler.com