PNOC-EC to secure P10-B standby loan to fund projects

MANILA, Philippines –  PNOC-Exploration Corp., the petroleum and coal exploration arm of the state-owned Philippine National Oil Co. (PNOC), is set to secure a P10-billion standby loan facility to finance its future projects.

In a press briefing, PNOC-EC chairman Gemiliano Lopez Jr. said at least five banks have agreed to extend P2 billion each to PNOC-EC as standby loan for proposed projects this year.

Lopez said the loan facility could be tapped anytime should the company decide to increase its share in the $4.5-billion Malampaya deep water gas-to-power project.

“PNOC-EC fully supports the desire of the Department of Energy (DOE) to pursue a higher stake in the Malampaya natural gas project,” he said.

Earlier, the DOE said government is eyeing a higher stake in the project, with PNOC-EC ready to make a tender offer in case one of the partners are willing to sell down their stake in the Malampaya consortium.

“Further, if one of its partners defer further investment in the project, PNOC-EC is likewise ready to step in for the additional cash calls for the Phase 2 development of the Malampaya natural gas project,” he said.

Currently, PNOC-EC holds a 10 percent interest in the project, while Shell Philippine Exploration B.V. (SPEX) and Chevron Malampaya LLC both own 45 percent each.

Lopez said PNOC-EC has available funds for the proposed Phase 2 development of the Malampaya project.

The Malampaya consortium recently announced it will undertake a development program of the Malampaya gas field amounting to $1 billion.

But Lopez said the facility could also be tapped for other projects of the company such as the development of coal-fired power plants and mine-mouth facilities.

Lopez said for a mine-mouth project in Mindanao, they would need around P800 million.

As PNOC-EC marks its 35th year in the industry, he said the company reaffirms its commitment of exploring and harnessing indigenous energy resources to provide a stable energy supply for the country.

The company is also taking the lead in the implementation of downstream natural gas infrastructure projects such as the Batangas-to-Manila natural gas pipeline, the integrated Bataan liquefied natural gas (LNG) terminal, power plant and natural gas and pipeline projects.

Aside from petroleum, PNOC-EC is also engaged in the coal business. The company holds coal operating contracts in various parts of the country, namely COC 41 and COC 152 (Silay) in Zamboanga Sibugay, COC 122 and 141 in Isabela and COC 140 in Surigao del Sur.

PNOC-EC also operates coal terminals in Zamboanga Sibugay, Cebu, Batangas, and North Harbor, which serve as its handling facility for local as well as imported coal that the company supplies to power plants and cement factories in the Philippines.

PNOC-EC also owns a private commercial port – the Energy Supply Base (ESB) located in Mabini, Batangas which offers berthing, cargo handling, storage and warehousing facilities to energy companies and other commercial clients.