Independent oil players want part of PNOC property for project sites

Published August 13, 2017, 10:01 PM By Myrna M. Velasco

http://business.mb.com.ph/2017/08/13/independent-oil-players-want-part-of-pnoc-property-for-project-sites/

The country’s so-called “independent oil industry players” are inclined to corner chunk of the real estate assets being auctioned by state-owned Philippine National Oil Company (PNOC) for their prospective project sites.

The Independent Philippine Petroleum Companies Association (IPPCA) sounded off such intent, following the announcement of PNOC through its chief executive Reuben S. Lista, that they have already decided to bid out for lease about 91 parcels of land under the state-run firm’s ownership.

These properties are still under lease to Petron Corporation, but the tenure will already lapse by next year.

As noted by IPPCA Executive Director Paul Isla, their group of players had been invited “to participate in the bidding for the lots.” He qualified though that there had been no specific date set yet for the conduct of public bidding.

Lista previously indicated to media that it wants to negotiate for a higher price (at least based on prevailing market price) with Petron on the leased properties – and that discussion timeline is set within this month.

The PNOC chief executive emphasized that if the parties could not agree on a “lease fee” that would be fair and desirable to the government, their next move would be to auction the real estate assets for lease to other interested parties, including the other players in the downstream oil sector.

For IPPCA, PNOC’s move “is a welcome development,” emphasizing that “this is really the best time for (the state-run company) to bid out the properties.”

IPPCA has core memberships from the league of independent players like Seaoil, Eastern Petroleum, Flying V, Filpride, Filoil, Unioil and Clean Fuel.

Isla reckoned that PNOC may even consider “other contractual arrangements like a joint venture, which also be awarded through bidding.”

He stressed that such deal “may generate even more income as compared with straightforward lease.”

As stipulated, Petron has been utilizing at least 24 of the PNOC properties for its bulk fuel plants; while 67 are sites for its gasoline stations.

The properties, it was noted, cover vast areas ranging from 321 square meters to a high of 377,000 square meters.

“With so much interest for its properties, the PNOC will definitely get a better price from bidding out the lease to those lots rather than just renewing the contract with Petron,” Isla stressed.