PNOC-EDC earns P1.1-B from overseas deals

PNOC Energy Development Corp. reported yesterday that it earned P1.1 billion on third party drilling and consultancy service contracts from June 1996 to December 2002.

PNOC-EDC chairman and president Sergio Apostol said the revenues came mostly from drilling contracts with Papua New Guinea’s Lihir Management Co. (LMC), Gulf Indonesia and Philippine Geothermal Inc. (PGI)

Apostol said the figures show an average 10-percent yearly increase in the geothermal firm’s drilling income.

Last year, PNOC-EDC’s drilling income amounted to P249.2 million, 12 percent higher than the previous year’s income of P222.6 million. The bulk of last year’s income came from the company’s drilling contract with LMC.

The state-owned firm has just concluded its third contract with LMC for the drilling of geothermal, steam relief and dewatering wells in Lihir Island, Papua New Guinea.

Since 1999, PNOC-EDC has drilled a total of 28 geothermal wells and 10 dewatering wells, reworked three wells and deepened six wells in Lihir. It is eyeing new contracts with LMC for geothermal drilling services and steamfield development.

"We are confident that we can secure a new contract with LMC. After four years of drilling operations in Lihir, we continue to register zero lost time incident. In terms of timeliness, safety and cost-efficiency, PNOC-EDC leads other drilling contractors in Lihir," Apostol said.

Rig 9, which the company uses in Lihir, is expected to receive its third safety recognition from the International Association of Drilling Contractors (IADC) - Accident Statistics Program (ASP). It received its first safety recognition during its first two years of international operations.

"We are currently working on our ISO 9001 Certification Series 2000 to increase our competitiveness and strengthen our hold in the global market," Apostol added.

The country’s largest geothermal company owns and operates eight drilling rigs. It started exporting its drilling services in 1997 for an oil and gas drilling contract in Indonesia.

The company was able to send rigs to Indonesia and Papua New Guinea and deployed drilling consultants and rig maintenance specialists to both countries.

In the Philippines, PNOC-EDC counts the PGI Inc. among its major clients. – Donnabelle Gatdula