PNOC unit plans follow-on share offer

PNOC-Exploration Corp., the oil and gas exploration arm of state-run Philippine National Oil Co., is selling 60 percent of its outstanding shares through a follow-on and secondary offering worth about P3.15 billion in the second half of the year to fund its exploration activities.

PNOC-EC officer-in-charge Rafael Del Pilar said the company is now finalizing the terms of its planned additional issuance of shares to the public. "We’re ready to do it in 20 weeks," he said.

Del Pilar said the company is planning to offer 2.1 billion shares, 1.5 billion of which will come from its unissued stock while the balance of 600 million will be sold by parent company PNOC.

"The pricing will depend on what kind of appetite they will have in our company," he said.

Del Pilar said this year would be the right time for PNOC-EC to hold its secondary offering because of the bright prospects in its oil and gas exploration ventures.

In addition to petroleum-related activities, PNOC-EC is also into coal development, production and trading. The company also provides port and warehousing services to energy and commercial clients through its energy supply base in southern of Metro Manila.

PNOC-EC has earmarked P21 billion for various upstream and downstream petroleum exploration activities from 2007 to 2014. Of the total, P1.3 billion will be spent this year, P657 million of which would go to petroleum exploration activities, P485 million for coal exploration and development projects and P164 million for downstream activities.

This year’s budget will finance PNOC-EC’s participation in oil and gas exploration projects including: Service Contract 47 in offshore Mindoro and SC 58 and 59 in North Calamian and West Balabac in Palawan, respectively.

PNOC-EC is also planning to spend some P102.96 million for an exploration project in the South China Sea.

It has set aside P406 million for its coal projects in Zamboanga, Isabela, Surigao and Indonesia.

PNOC-EC is 99.78 percent owned by the Philippine government, with the remaining 0.22 percent held by the public.