PNOC-EC seeks lifting of EO requiring bidding for exploration activities

MANILA, Philippines - PNOC-Exploration Corp., the oil and gas unit of state-owned Philippine National Oil Co., wants the government to lift an executive order requiring it to hold a bidding when tapping partners for its exploration ventures, according to company documents.

PNOC-EC said EO 556 “unduly restricts the company’s ability to undertake its exploration and production projects in timely and effective manner.”

Essentially the order, signed by former President Arroyo in 2006, states that there shall be no “farm-in” or “farm-out” contracts awarded by any government agency, including PNOC.

Instead, it said that, “all government agencies, including the PNOC, shall follow a strict bidding procedure in forging partnership with interested parties, including the Camago-Malampaya reservoir venture.”

The lifting of EO 556 is among PNOC-EC’s list of recommendations to help the company achieve the government’s objective of making the country energy self-sufficient.

PNOC-EC also recommended amendments to Republic Act 9184 (The Procurement Reform Act) and other laws to speed up the procurement process in government.

Furthermore, PNOC-EC, which owns several exploration contracts, wants the government to mandate the use of locally procured commodities such as coal, oil and gas fuel for the state-controlled power plants.

The company has set aside a budget of P7 billion for its work program this year. It holds a 10-percent stake in Malampaya deep water gas-to-power project in Palawan.