The planned privatization of the Philippine National Oil Co. Exploration Development Corp. (PNOC-EDC) is dependent on the passage of the Omnibus Energy Reform Bill, PNOC-EDC president Nazario Velasquez said yesterday.
Velasquez said a lot will depend on the rules governing the privatization of energy-related assets.
"But we would like to privatize the company within the year, or ahead of the privatization of the National Power Corp. (Napocor)," the government official added.
Velasquez said government will retain 40 percent while the remaining 60 percent will be sold. Between 10 and 30 percent will be sold to the public through an initial public offering (IPO) while the balance (30 to 50 percent) will be bid out to a strategic foreign or domestic partner.
Under the Constitution, a foreign strategic partner can own a maximum of 40 percent of a Philippine company exploiting the country's natural resources. The PNOC-EDC is involved in the exploration, development and exploitation of oil, coal, natural gas, steam and hydropower sources.
Velasquez said several business groups have stated their intention to bid for the government exploration firm.
Among these are the Philippine Geothermal Inc. (PGI), the Manila Electric Corp. (Meralco), the Union Oil Co. of California (Unocal), California Energy (Cal Energy), Aboitiz Equity Ventures (AEV), and Oxbo Power of the USA.