PNOC to start transition into operations company
Posted on December 19, 2016
http://www.bworldonline.com/
THE Philippine National Oil Co. (PNOC) is transforming into an operations company from a holding firm, taking upon itself the implementation of the ongoing programs of its subsidiaries, its new head said.
“The transition will begin by January 2017,” said Reuben S. Lista , PNOC president and chief executive officer.
In the past, PNOC has been observed by industry participants as simply waiting idly for its funds to reap interest income from banks, while counting up its share of the gains from the Malampaya gas find and rental proceeds from its various property holdings.
Mr. Lista described the past PNOC management as “happy lang sa investments nila (just happy with their investments),” as top officials park the company’s equity of almost P8 billion in banks that earn an interest of 1.8%, making P144 million a year.
PNOC, a company created via a presidential decree in 1973, is mandated to provide and maintain an adequate and stable supply of oil.
Its amended charter includes energy exploration and development. Operations also cover energy development, including indigenous energy sources like oil and gas, coal and geothermal.
With the transformation, PNOC Exploration Co. (EC) personnel will continue to perform the functions of operating the PNOC energy supply base (ESB) in Mabini, Batangas while training the PNOC personnel who will take over the facility, said Mr. Lista, a retired admiral who assumed office last month.
In a memorandum to the PNOC board, Mr. Lista thanked the PNOC EC president for conforming to transfer the administration and operation of the ESB as well as the coal trading operations to PNOC.
Energy Secretary Alfonso G. Cusi chairs the PNOC board.
“Thus this transfer of the ESB and trading operations will provided the platform for PNOC to start transforming itself into an operations company,” he said.
“Needless to say, it will also provide the opportunity for PNOC EC to concentrate its efforts and resources toward its main mandate of taking the lead in the exploration, development and production of oil, gas and coal resources,” he added.
Mr. Lista placed the completion of the transition activities and the full turnover within a six-month period or until June 2017.
“As GOCC (government-owned or -controlled corporation), we have to make money,” he said. “As president, it is my job to think of ways on how to make money for the company.”
The PNOC management has created a technical working group to work with PNOC EC to iron out details of the transfer and “swiftly implement the same,” said Mr. Lista, who was the 18th commandant of the Philippine Coast Guard.
The PNOC energy supply base is a property owned by the company with a total area of around 150,550 square meters, or 10.5 hectares. It is covered by a lease agreement between PNOC and PNOC EC ending in 2029. PNOC will be pre-terminating the lease because of the new pact. — Victor V. Saulon
