Tuesday, November 5, 2019

Review of all PNOC-EC deals set after Russian supply fiasco


By Lenie Lectura -

ENERGY Secretary Alfonso Cusi wants the Philippine National Oil Co.-Exploration Corp. (PNOC-EC) Board to review all transactions after President Duterte sacked the corporation’s president.
“I asked the members of the board to review…to put proper direction. At least, hindi na katulad ng nangyari na [it’s no longer a case of what happened before, when] things were hidden from me, from the board. You know, why would you have the contract signed in the presence of the President without being vetted,” said Cusi, who is also the chairman of PNOC-EC.
PNOC-EC President and Chief Executive Officer Pedro A. Aquino Jr. was asked by the President to resign after the former signed a memorandum of agreement with a Russian firm without approval of the board or its chairman. 
“Remember that PNOC-EC is a corporation.  So, the president cannot just do things as if it’s his own. I cannot do it either. I’m the chairman, I can’t do it. I just facilitate,” said Cusi.
 The supposed deal involves, among others, petroleum supply to PNOC-EC. “It’s 110 percent of the country’s demand, iyan ang volume na pinag-uusapan [that’s the volume covered by their transaction]. Imagine that,” said Cusi. “As the President said, that’s an idiotic contract.”
However, since Aquino resigned and the DOE never approved the deal, Cusi said “the contract never existed and has no effect on the country.”
Also, Cusi said the board is expected to craft a strategic plan. “The direction will be reviewed and, of course, we’ll have some, strategic planning. These things have happened, so what do we do? We need some strategic planning, so they have to come up with that,” added Cusi in a mix of English and Filipino.
PNOC-EC, Cusi said, remains an exploration company. Aquino’s replacement has yet to be named. Lourdes Gelacio is currently the officer in charge president of PNOC-EC.

Sen. Win: stick to mandate

Sen. Sherwin Gatchalian earlier commented that PNOC and its units should stick to their mandate. 
“We could have prevented this situation if we had a more focused PNOC. Unfortunately, the PNOC is spreading itself too thin by doing different things when its focus should be on oil and gas exploration,” said the lawmaker, who is also the Senate Energy committee head.
For example, the PNOC-EC is supposed to be tasked with exploration but has intended to go into petroleum trading. The PNOC mother company also wants to go into liquefied natural gas, while the PNOC Renewables Corp. is building solar rooftops.
“We plan to remedy this situation by championing in this Congress a measure that will restructure PNOC by abolishing its existing subsidiaries and directing its focus away from non-exploration activities,” Gatchalian said. “The bottom line here is that we will refocus the PNOC to purely upstream oil and gas so that it will contribute in securing the country’s energy needs.”
The Senate Committee on Finance is scheduled to hold a public hearing on PNOC’s 2020 budget on Monday (November 4).

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