PNOC-EC eyes partners in coal, oil and gas exploration

Business Mirror
THURSDAY, 23 FEBRUARY 2012 20:41 PAUL ANTHONY A. ISLA / REPORTER


THE Philippine National Oil Co.–Exploration Corp. (PNOC-EC), the coal, oil and gas exploration arm of the government, is open to partner with service contractors in developing potential oil and gas or coal fields in the country.


In a press conference, Gemiliano Lopez Jr., PNOC-EC chairman and chief executive, told reporters that they have plans to farm-in existing and potential coal, oil and gas service contracts.


Although he declined to identify some of the potential areas, he said they have already pinpointed a number of “good” sites.


Lopez earlier said they are looking at spending a capital expenditure budget of P5.484 billion and a separate P14-billion fund in standby credit facilities that could be accessed.


PNOC-EC said petroleum exploration activities will require P1.47 billion, P897.25 million of which is allocated for acquisition of new blocks both in domestic and overseas areas, which also includes data purchase, geological and geophysical studies and exploration drilling.


“However, it should be noted that acquisition of new overseas blocks is contingent on the financial viability and technical evaluation of prospects,” the company said.


PNOC-EC said it allotted P357.9 million for well planning, exploration drilling and post-well evaluation in Service Contract (SC) 37 in Cagayan and another P201.90 million will be spent for seismic acquisition, processing and interpretation both in SC 47 in offshore Mindoro and SC 57 (Calamian).


PNOC-EC also noted that it will spend about P551.93 million for coal-exploration activities this year in which P424.89 million only account for the exploration and initial development activities in the Lower Butong area and other development activities in the Lumbog area at the start of its production stage.