DOE takes stock of real estate properties of PNOC subsidiary

MANILA, Philippines - The Department of Energy (DOE) is taking a stock of the real estate properties of its subsidiary Philippine National Oil Co. (PNOC).

The ongoing review will ensure that the government maximizes the use of its properties for profitable projects, Energy Secretary Rene Almendras said.

“We are rationalizing the real estate holding of PNOC,” Almendras said.

“That means those that need to be sold will be sold...Those that can be leased should be leased. We do not want an asset that is not moving,” Almendras said.

Various real estate assets of the DOE are held by PNOC, which was created in November 1973 to provide and maintain an adequate and stable supply of oil.

Almendras said the DOE is in talks with the PNOC for areas that can be developed under a joint venture.

In 2003, PNOC Development Management Corp. and Sta. Lucia Realty signed a deal to develop a 32-hectare prime property fronting General Trias Drive into a mixed use residential and retail commercial complex.

In May, the DOE said a Dubai-listed oil refiner is close to sealing a deal with a state-run firm for a billion-dollar investment in refinery and depot in the country.

The petroleum firm is in talks to rent the property of PNOC Alternative Fuels Corp. in Bataan.

“I want to increase your asset turnover ratio,” Almendras said.

Almendras said that if the appreciation potential is not good, the government should unload the property.

Specifically, the DOE will conduct an inventory on the housing developments in Cavite to make sure that there are no idle assets.

In 2001, Filoil Development and Management Corp., the real estate development arm of PNOC, started a socialized housing project for 500 families in a 25-hectare of the 118-hectare property of Filoil in Rosario, Cavite.

Almendras said some assets of PNOC are leased as gas stations while some assets in Bohol have already been sold.

Other subsidiaries of PNOC are PNOC Exploration Corp., PNOC Shipping and Transport Corp. and PNOC Renewables Corp.