PNOC-EC head backs deferment of shares sale

MANILA, Philippines - PNOC-Exploration Corp. chairman and CEO Gemiliano Lopez said he fully supports Aquino administration’s stance to hold off the privatization of the PNOC-EC’s shares.

“I do not want to sell it (PNOC shares). The National Government earns a lot from PNOC-EC and why would we sell it,” he said.

Lopez said he believes that PNOC-EC is better be left to the hands of the government. “It should be owned by the Filipino people. Every Filipino is benefitting from it,” he added.

Lopez made this statement as he vowed to work on the finances of PNOC-EC. “We believe that we can make more income for the company,” he said, noting that they have lined up a number of priority projects which are aimed to increase its revenues.

Energy Secretary and PNOC chairman Jose Rene Almendras earlier said the National Government has finally put in the back burner the privatization of PNOC-EC.

“The present decision is Malampaya’s not going to be sold. It’s not for sale. There are other PNOC subsidiaries that are gonna be offered for sale but not this one, not yet. The small ones, service ones. We are not recommending it because the upside value is very good,” Almendras said.

Almendras said the NG sees no need to privatize PNOC-EC.

“The present situation of the government, we’re OK. We’re doing really well. We’re gonna have good rein on the deficit because of the more responsible expense initiatives we’re doing, so the pressure to unload and privatize this particular asset is not as great now and it’s not the one that you want to let go considering the amount of resources it’s bringing in now as of our last discussion. We’re gonna keep it and we’re gonna hold it,” he said.

The National Government earlier contemplated on selling the 10-percent stake of PNOC-EC in the $4.5-billion Malampaya gas project in Palawan to raise much-needed fund to bridge its budget gap.

Based on earlier estimates, the sale of PNOC-EC share in the project would raise some P6 billion to P11-billion additional revenues for the National Government.

Last year, PNOC-EC remitted over P1 billion worth of dividends to the National Treasury.

PNOC EC is the only Filipino company ever invited to join this landmark project. The Malampaya Project provides the country with at least 2,700 megawatts of clean power with its three power plant customers in Batangas- Sta. Rita, San Lorenzo and Ilijan.