Alfonso Cusi wants to abolish PNOC and subsidiaries
Danessa Rivera (The Philippine Star) - December 19, 2018 - 12:00am

MANILA, Philippines — Energy Secretary Alfonso Cusi wants to abolish or energy-related consolidate non-performing energy government-owned and controlled corporations (GOCCs).

Cusi said underperforming energy-related government companies should be closed down or consolidated into one.

One company he cited was the state-owned Philippine National Oil Co. (PNOC).

“I want to abolish offices that are not performing. In fact, I told admiral (Reuben Lista), it would be better to abolish PNOC if it’s not doing any project. Another thing I want to do is merge PNOC and its subsidiaries,” he said.

PNOC’s subsidiaries include PNOC-Exploration Corp. – which has stakes in oil and gas projects particularly a 10- percent interest in the Malampaya project –and PNOC Renewables Corp.

A GOCC is a company created by law to help improve the lives of people, Cusi said.

He wanted PNOC to become like Petronas, Malaysia’s government owned oil and gas company. Petronas is ranked among Fortune Global 500’s largest corporations in the world.

According to Cusi, PNOC has the money but finds it difficult to pursue projects since it has to seek concurrence for its budgetary requirements from Congress.

Last year, PNOC’s budget request was deferred since it was asking for funds for a proposed liquefied natural gas (LNG) integrated facility.

The DOE had tasked PNOC to develop an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts.

The state-run firm is still searching for a partner for the project but it is also looking at the possibility of investing in the company that will bag the LNG terminal.

ALFONSO CUSI PHILIPPINE NATIONAL OIL CO.
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