PNOC to streamline operations

State-owned Philippine National Oil Co. (PNOC) will rationalize its operations to avoid duplication of functions among its subsidiaries.

"We are currently working out the rationalization of our subsidiaries so that they would be able to concentrate on one function," PNOC president and chief executive officer Thelmo Y. Cunanan said.

Cunanan said this move will allow PNOC to identify which areas need to improve. "If we have focus, then we could easily find where our strengths and weaknesses are," he said.

He said they are now looking at two companies under the wing of PNOC to start a rationalization scheme. Cunanan said initial studies show that these two firms have some overlapping functions.

He said they are studying the possibility of transferring all the coal mine-related functions to PNOC Coal Corp. (PCC) from PNOC-Exploration Corp. (PNOC-EC).

"We will transfer all the exploration of coal to PCC so that all coal-related functions of PNOC will be handled by PCC," he said.

He said the rationalization of the functions of PCC and PNOC-EC will happen early next year.

Cunanan said they are discussing other areas for rationalization. "There are some discussions. We need to assure that our subsidiaries would concentrate on their specialization," he said, declining to identify other companies that would be subject to the so-called rationalization.

The heads of PNOC subsidiaries, he said, are meeting every first and third Wednesday of the month to discuss possible areas of improvement in the company.

Aside from PCC and PNOC-EC, the other subsidiaries of PNOC are: PNOC-Energy Development Corp., PNOC-Holdings Co., PNOC Filoil Development and Management Corp., PNOC Shipping and Transport Corp., and PNOC Petrochemical Development Corp.