PNOC-EDC lines up more gas search projects in ’03

State-owned PNOC-Energy Development Corp. (EDC) will intensify its natural gas exploration activities next year.

PNOC-EDC chairman and president Sergio Apostol said they are looking at some areas in Palawan, Mindoro, North Cebu and Northwestern Leyte.

Apostol said they would be getting partners for these projects. "We might be tapping joint venture partners in these projects," he said.

He said the Palawan prospect is the most promising. "Together with a JV partner, we may be able to discover another Malampaya in this area," he said. The Malampaya Deep Water Gas to Power Project, undertaken by a consortium composed of Shell Philippines Exploration B.V. (SPEX), Texaco of US and PNOC-Exploration Corp., is one of the single biggest investments in the country amounting to $4.5 billion excluding investments poured into the development of an oil rim.

Apostol said he had explored the possibility of tapping investors from an Arab country but the talks did not prosper.

"We had stopped our negotiations. Maybe we can just get other interested parties," he said.

He said they have received offers from East Timor for an oil and gas exploration in the Philippines. But Apostol said investors from East Timor have yet to make a formal offer.

Earlier, Apostol said he was approached by some officials of SPEX for a possible business venture in Palawan. A SPEX official, on the other hand, denied that there is an ongoing talk between the two firms for a possible joint venture.

Apostol said SPEX wants EDC to become its partner after EC has indicated plans to privatize and sell its shares in the consortium.

EC is planning to sell some 49 percent of its 10-percent stake in Malampaya consortium through an initial public offering (IPO) next year.

EDC, in a bid to gain some footing in the natural gas industry, acquired full ownership of GSEC (Geophysical Survey and Exploration Contract) 75 in Central Luzon basin in 2001. It led the drilling of the first gas well in Victoria, Tarlac.