PNOC-EC hikes capital spending this year

Manila Times.net
Published : Wednesday, February 15, 2012 00:00 Written by : EUAN PAULO C. AÑONUEVO REPORTER


Philippine National Oil Co.-Exploration Corp. (PNOC-EC) has increased its capital expenditures this year in line with plans to boost its coal and petroleum projects.


Documents showed that PNOC-EC earmarked a proposed budget of P5.49 billion for capital projects this year, up from P5.02 billion in 2011.


Gemiliano Lopez, Jr., PNOC-EC chairman, said that of the amount, P1.68 billion would come from unutilized funds or carry-over budget from the company’s operations last year.


This includes “unused budget from 2011 for projects such as drilling of exploration well in Service Contract (SC) 63 East Sabina; drilling and logging project in Coal Operating Contract (COC) 41 Sta. Barbara and Lower Butong; and construction of a compressed natural gas (CNG) daughter station in Batangas, which are all re-scheduled in 2012.”


The bulk of PNOC-EC’s budget for 2012 amounting to P1.51 billion was earmarked for the company’s programmed spending on the Malampaya natural gas field under SC 38. The company has a 10 percent stake in the project in partnership with Shell Philippines Exploration B.V. and Chevron Malampaya LLC, which both control a 45 percent shareholding.


PNOC-EC will also spend P1.47 billion for the acquisition of new petroleum blocks and the necessary exploration and development works. PNOC-EC also plans to use P357.90 million for well planning, exploration drilling and post-well evaluation in SC 37 in onshore Cagayan; P201.90 million for seismic acquisition, processing and interpretation both in SC 47 in offshore Mindoro and SC 57 in Calamian off the coast of Palawan.


The company also set P551.93 million for coal exploration activities, the bulk of which will go to planned mines in Zamboanga Sibugay.


PNOC-EC’s proposed investment budget also includes allocation amounting to P279.28 million for various development projects such as a mine-mouth coal plants in Isabela and Zamboaga Sibugay and CNG stations in Luzon.


PNOC-EC is the petroleum and coal arm of state owned PNOC. At present, the government owns 99.71 percent of PNOC-EC shares, with the public owning the remaining 0.29 percent.