DOE backs PNOC-EC share offer - By Donnabelle L. Gatdula

The Department of Energy (DOE) has expressed support to PNOC-Exploration Corp.’s plan to undertake a secondary offering of shares, Energy Secretary Raphael P.M. Lotilla said.

“If a float of shares is done successfully, then it will contribute to government’s privatization proceeds, that’s why we’re not closing the window,” Lotilla said.

He said the government is still not abandoning the possibility of issuing more PNOC-EC shares at the stock market.

“The second offering of PNOC-EC is still being studied. It plans to float additional shares. But it will depend, among others, on the availability of income flows from other sources. I don’t want to pre-empt the study, and should be prepared to consider all options and raise money for the company as well as for the government,” he said.

Last February, PNOC president Pedro Aquino said PNOC-EC may issue an additional 38.3 percent of its shares to the public this year. He said they plan to bring up to 40 percent the number of shares listed in the local bourse.

“Now we have only 1.7-percent stake listed in the Philippine Stock Exchange. We want to re-issue shares. We are looking at 38.3 percent more. Our target is up to 40 percent,” Aquino said.

Aquino said they believe there are good prospects for tapping the stock market.

“We see good prospects for EC to issue more shares in the stock exchange as we have a good work program,” he said.

He said they are seeing bright prospects of finding oil and gas reserves in North Calamian.

PNOC-EC, he said, also submitted to PNOC their work program to go on exploration outside the Philippines. “We may look at various oil and gas exploration projects in West Africa, Middle East.”

He said PNOC-EC is also looking at exploring in Brunei, Timor Leste and Indonesia.

Aquino said they may tap ING Bank as financial advisor for the proposed PNOC-EC secondary offering. “We plan to sit down with ING Bank if they could be the financial advisor for the offering,” he said.

He said ING Bank has served as financial advisor for PNOC-EC’s other fund-raising ventures.

“ING is our advisor for the then proposed sale of 49 percent of PNOC-EC’s 10-percent stake shares in Malampaya. We are studying if we can use the same financial advisor,” he said.