PNOC to sell part of exploration unit

The Philippine National Oil Corp. (PNOC) will sell a substantial portion of its 99.78-percent stake in Exploration Corp. (EC) as part of its commitment to privatize its subsidiary.

"It is part of our commitment to privatize when Malampaya’s gas starts flowing," said outgoing PNOC-EC chairman Horacio V. Paredes during the company’s stockholders meeting yesterday.

The natural gas in the Malampaya fields is expected to start flowing in October this year, but the well’s full commercial operations will be in January 2002.

PNOC-EC president Rufino B. Bomasang said that they are now in the market for a financial adviser for the disposition of the company’s common shares. Among the issues that have yet to be determined are the price or value of the shares and how many shares government will retain.

"Government will retain a substantial share similar to what happened in Petron Corp.," Bomasang said.

The Philippine government through PNOC sold 40 percent to Saudi Aramco, then sold 20 percent to the general public through a public offering. It retained 40 percent through PNOC.

The PNOC-EC president said they will seek the approval of the Committee on Privatization (COP) for the plan, including the amount of equity the National Government intends to retain.

PNOC-EC stockholders elected yesterday a new set of officers and directors headed by newly-installed PNOC chairman Thelmo Y. Cunanan. Cunanan replaces Paredes as EC board chairman while Bomasang was retained as president. Other board members are Alfredo Bunye Jr., Rolando C. Escalona, Felix C. Guanzon, Milagros V. Reyes, Lourdes Li. Pimentel, and former congressman Michael O. Mastura. – Ted Torres