PNOC-EC to ramp up petroleum, coal portfolio

Manila Times.net
Published : Monday, January 09, 2012 00:00 Written by : EUAN PAULO C. AÑONUEVO REPORTER


Philippine National Oil Co.-Exploration Corp. (PNOC-EC) plans to vie for several petroleum and coal projects from the government.


Gemiliano Lopez Jr., PNOC-EC chairman, said that the company has initially identified five potential areas for oil and gas and four for coal exploration and development.


“[We are looking at] service contracts in Palawan and Mindanao [with] existing studies [but we have] to follow [these] up,” he said.


Most of the areas PNOC-EC is interested in scouring for petroleum and coal reserves are located near the company’s existing projects.


PNOC-EC currently holds interests in eight petroleum service contracts and five coal operating contracts located in various parts of the country.


Lopez said that PNOC-EC may increase the number of projects it targets to pursue depending on studies being conducted by the company’s personnel.


He earlier said that the company’s plan to increase its petroleum and coal portfolio will help improve earnings and the development of the country’s indigenous energy sources.


PNOC-EC’s plan was recently given a boost by the Department of Energy, which allowed the company to not only bid for such projects from the government auction block but to also secure a minimum stake in contracts to be handed out to other investors.


Under department circular DC 2011-12-0010, in particular, PNOC-EC shall have the option to take control of up to 5-percent participating interest in a petroleum service contract involving one or more Filipino-owned companies.


However, if a service contract involves no local investors, PNOC-EC shall have the option to secure a maximum of 10 percent participating interest in a petroleum project.


“All rights, privileges, benefits, costs, expenses, obligations and liabilities of [PNOC-EC] shall be in proportion to its participating interest in the proposed service contract,” the circular signed by Energy Secretary Jose Rene Almendras said.


The government is currently offering 15 areas for petroleum and 30 coal areas offered for exploration and development. The Energy department targets to award the petroleum and coal contracts this year.