MANILA, Philippines — State-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC) has set a budget of P10.59 billion for its operations and projects.
The biggest allocation is given to petroleum exploration at P7.47 billion, followed by coal exploration and development (P1.81 billion) and the Malampaya project (P766.31 million).
PNOC-EC’s board has set capital expenditures of P64.7 million and operating expenses at P477.86 million.
Last month, PNOC-EC said it was looking to increase its stake in the Malampaya deep water-gas-to-power project.
It currently owns 10 percent of Service Contract (SC) 38.
When Udenna Corp., the holding company of Dennis Uy, announced in November that it acquired Chevron Philippines Ltd.’s 45 percent stake in the $4.5-billion Malampaya project, PNOC-EC exercised its right to match.
Energy Secretary Alfonso Cusi, who also sits as ex-officio chairman of PNOC-EC, said the state-run firm saw the opportunity to increase its stake in Malampaya.
The Malampaya project is PNOC-EC’s largest project to-date. It is also the country’s most successful petroleum service contracts out of 23 active projects.
As the largest natural gas industrial project in the Philippines, it recovered all costs in four years.
The Malampaya gas project supplies fuel to around 40 percent of gas-fired plants in Luzon with over 3,000 MW in capacity.
While the contract will end in 2024, supply from the Malampaya gas field is projected to be depleted by early 2022 or latest by 2027.
Apart from the Malampaya project, its other oil exploration and production projects are SC 37 (Cagayan), SC 57 (Calamian), SC 58 (West Calamian), SC 59 (West Balabac), SC 63 (East Sabina), SC 74 (Northwest Palawan) and SC 75 (Northwest Palawan).
PNOC EC also holds four coal operating contracts (COC): COC 41 (Malangas), COC 122 (Isabela), COC 185 (Buug-Malangas) and COC 186 (Imelda-Malangas).
As part of its coal business, the company also trades coal through its coal terminal located in Malangas, Zamboanga Sibugay.