PNOC unit teams up with Malaysian firm for marketing blitz

PNOC-Energy Development Corp. (EDC) has entered into an international marketing agreement with a Malaysia-based firm to boost its global business activities.

EDC, the geothermal development arm of the state-owned Philippine National Oil Co. (PNOC), said it signed a teaming agreement with SJA Trade and Services Sdn Bhd, a marketing company registered in Malaysia.

The state-run firm said through SJA, it will primarily target offering its services to the African market where oil, gas, and geothermal drilling programs are on the uptrend.

EDC noted that areas such as Sudan, Ethiopia and Djibouti have seen annual increases in their drilling programs. In fact, results of exploration and production drilling in these areas are very encouraging, not only to big oil players but also to Southeast Asian oil companies.

The agreement was signed by EDC vice president Ester R. Guerzon and SJA chief executive officer Norasidi Salim.

"We consider Sudan as an immediate drilling market of special concern brought by the overly active operations of Malaysian oil companies in that country," Norasdi said.

EDC has been offering its drilling expertise in other countries such as Papua New Guinea (PNG) and Indonesia.

Since 1998, EDC has been engaged in drilling operations in Lihir Island, New Ireland Province in PNG. EDC had already concluded its third contract for the drilling of geothermal, steam relief and de-watering wells in Lihir Island.

The state-owned geothermal firm had operated for over three years with zero lost-time incident, making the company the leader in safety performance in PNG.

EDC’s annual revenue comparison shows an average 10 percent yearly increase in drilling income. In 2002, EDC earned P249.2 million from drilling alone.

Its drilling income hit P1.1 billion in December 2002 mainly from drilling and consultancy service contracts with Lihir Management Co., Gulf Indonesia and Philippine Geothermal Inc. since June 1996. EDC owns and operates drilling rigs.

It started exporting its drilling services in 1997 for an oil and gas drilling contract in Indonesia. The company was able to send rigs to Indonesia and PNG and deployed drilling consultants and rig maintenance specialists to both countries.

In the Philippines, EDC counts PGI of the Unocal group among its clients.

EDC is primarily engaged in the business of developing and operating geothermal energy projects and geothermal power projects in the Philippines.

It operates geothermal energy projects in Leyte, Luzon, Negros and Mindanao with a total installed capacity of 1,148 megawatts or about 60 percent of the country’s total installed geothermal energy capacity.