Philippine National Oil Co. (PNOC) president Thelmo Y. Cunanan said in an interview that oil conglomerate is just waiting for a study on the oil industry prospects to be finished before they start to pour in fresh investments.
There are studies and audits being conducted. They need these studies so that they would know where to strategically place their money," Cunanan said.
Cunanan said they expect the study to be completed within the first quarter of this year. It was learned that both Masshor and PNOC have a working group and technical team to facilitate the proposed investments of the Brunei group.
According to Cunanan, Masshor is trying to justify entry in the proposed $80-million Batangas-Manila (Batman) gas pipeline $600-million naphtha cracker plant and other related infrastructure projects.
"Masshor is probably coming in through equity participation in these projects. But these investments would have to be determined by the study," he said.
Masshor chairman Hamid Bin Haji Malai Masshor, in an earlier interview, said they would decide on the amount of equity to pour into the gas pipeline project early this year.
According to Masshor, Masshor Clough Sdn Bhd, a joint venture company between the Masshor group and Clough Engineering Ltd., will be the one to handle its investments in the Batman project. Clough, so far, has existing gas pipeline projects in Brunei and has annual revenues of about $600 million, Australian dollars.
"We are committed to this project. We are just waiting for the outcome of the feasibility study. Once we get the details we will decide on the equity that we would be taking in," Masshor said.
Masshor Clough has expertise in the installation of submarine pipelines, engineering construction, and installation hook-up of process piping.
In November last year, the Masshor group sent an investment mission to the Philippines to study the prospects of gas and oil-related projects in the Philippines. Aside from the gas pipeline cracker plant projects, Masshor is also eyeing other business opportunities in the Philippines such as waste management, pier repair, shipping and transport.
The investment mission forms part of the group’s commitment to President Arroyo who made a state visit to Brunei in August 2001.
In that state visit, the Philippines was able to sign a memorandum of understanding between PNOC-ED and Masshor. The MOU allows the two firms to explore talks on possible oil and gas related ventures.