PNOC-Exploration Corp. (PNOC-EC), the upstream energy arm of state-owned Philippine National Oil Co., is exploring a possible tie-up with British Petroleum (BP) for the establishment of depot facilities in the country.
PNOC-EC President Pedro Aquino Jr. said the proposed tie-up with BP is one of the measures identified to help the company improve its revenues.
“Management is trying its best to alleviate the effects of crude-oil price in our declining revenue by looking at other sources that could bring substantial income to the company,” Aquino said.
Aside from eyeing a partnership with BP, Aquino said PNOC-EC plans to expand its business tie-ups with Nigeria, China, Oman and Russia to market their products here and abroad.
PNOC-EC is looking at investing into small-producing wells in Indonesia that will “make us an oil producer no matter how small the production capacity is,” Aquino said in a speech delivered during the company’s 39th anniversary.
PNOC-EC also wants to increase its international oil and gas trading by appointing trading partners to supply oil and petroleum products in countries that favor a government-to-government transaction.
“We are currently experiencing some hiccups in our operations brought about by the sharp decline in the price of crude. But this does not deter us from pursuing our mandate to explore and develop new oil and gas sources,” Aquino said. “However, we have to make certain that we continue to grow and to fund all our existing and future projects.
“We are hopeful that all our efforts will provide us the additional revenues and impetus necessary to boost income this year and the succeeding years.”
The PNOC holds seven petroleum service contracts (SCs). These are SC 37 (Cagayan Basin), SC 38 (Malampaya), SC 47 (offshore Mindoro), SC 57 (Calamian), SC 58 (West Calamian), SC 59 (West Balabac) and SC 63 (East Sabina).
It used to operate the San Antonio Gas power plant within SC 37 before joining the Malampaya consortium in 1999 with a 10-percent stake.
PNOC also holds seven coal-operating contracts and trades coal. It also owns and operates a private commercial port in Mabini, Batangas, which provides berthing, cargo handling, storage and warehousing faclities.
“I will strive hard to make these revenue-enhancing measures come to reality so that our company’s growth will continue while our search for another Malampaya remains,” Aquino said.