MANILA, Philippines - PNOC-Exploration Corp., the oil and gas unit of state-owned Philippine National Oil Co., wants the government to lift an executive order requiring it to hold a bidding when tapping partners for its exploration ventures, according to company documents.
PNOC-EC said EO 556 “unduly restricts the company’s ability to undertake its exploration and production projects in timely and effective manner.â€
Essentially the order, signed by former President Arroyo in 2006, states that there shall be no “farm-in†or “farm-out†contracts awarded by any government agency, including PNOC.
Instead, it said that, “all government agencies, including the PNOC, shall follow a strict bidding procedure in forging partnership with interested parties, including the Camago-Malampaya reservoir venture.â€
The lifting of EO 556 is among PNOC-EC’s list of recommendations to help the company achieve the government’s objective of making the country energy self-sufficient.
PNOC-EC also recommended amendments to Republic Act 9184 (The Procurement Reform Act) and other laws to speed up the procurement process in government.
Furthermore, PNOC-EC, which owns several exploration contracts, wants the government to mandate the use of locally procured commodities such as coal, oil and gas fuel for the state-controlled power plants.
The company has set aside a budget of P7 billion for its work program this year. It holds a 10-percent stake in Malampaya deep water gas-to-power project in Palawan.