Current and Existing Projects

PETROLEUM EXPLORATION AND PRODUCTION

Project Title : Service Contract 38 – Malampaya Gas to Power Project
   
Project Location : Offshore Palawan
 
JV Partners and Percent Equity : Shell Philippines Exploration BV (SPEX) – Operator          45%

Chevron Malampaya LLC                                               45%

PNOC EC                                                                     10%

 
Project Description: Please see http://www.malampaya.com for further details.
 
 
 
 
Project Title : Service Contract 37 – Cagayan
 
Project Location : Cagayan Basin
 
JV Partners and Percent Equity : None
 
Project Description: SC 37 was awarded by the Department of Energy (DOE) to PNOC EC on 18 July 1990, originally covering an area of 2,200 sq. km. In 1997, it entered into a twenty-five (25) year production period when the San Antonio Gas Field was declared commercial by the DOE. This required PNOC EC to relinquish portions of the block retaining only the production area. Presently, SC 37 covers only 360 sq. km.
 
Brief Background: PNOC EC’s exploration activities in the Cagayan Basin started in 1974 and the 1st well, Rizal 2, was drilled in 1975.  Although gas was present, it was not tested because oil was the objective of the drilling.  In 1981, San Antonio 1 was drilled and flowed gas – PNOC EC’s first discovery.  It was a modest discovery but at the time it was not feasible to produce.  When new developments in gas-fired power plants were available, producing small gas fields like San Antonio became viable.

In 1995, the San Antonio Gas Field started production supplying the fuel requirements of a 3-MW power plant.  The field was in production until 2008 and by the time it was depleted it produced 3.54 BCF gas.

During the production period of San Antonio, PNOC EC re-assessed the petroleum potential of the area, including the old Rizal 2 well, which had gas. One of the prospects identified was Mangosteen.  The well was drilled in March 2015 and several gas-charged zones were encountered and tested. The Mangosteen-1 Well was considered a Gas Discovery Well as confirmed by the DOE.  Presently, PNOC EC is conducting post-well evaluation and assessment of the block for possible appraisal drilling.

 
 
 
 
Project Title : Service Contract 57 – Calamian
 
Project Location : Offshore Northwest Palawan
 
JV Partners and Percent Equity : China National Offshore Oil Company International Limited (CNOOC) – Operator                           51%

PNOC EC                                           28%

Mitra Energy Limited (MITRA)             21%

 
Project Description: SC 57 was awarded to PNOC EC on 15 September 2005. It covers a total area of 7,120 sq. km. in offshore Northwest Palawan and is situated around fifty (50) kms. northwest (NW) from the north-westernmost tip of Busuanga Island.

CNOOC farmed-in into SC 57 on 3 April 2006 acquiring 51% participating interest and operatorship while Mitra Energy farmed-in on 3 March 2006 getting 21%.  The Deed of Assignment to formalize their entry has yet to be signed by the President of the Philippines.

 
Brief Background: SC 57 is within the prolific NW Palawan block and is host to the Bantac I well, a non-commercial oil discovery by Occidental Petroleum.  With the farm-in of CNOOC and Mitra, additional 2,200 km. of 2D seismic data was acquired on top of the 3,300+ km. acquired by the previous contractors.

However, the request for approval of the Deed of Assignment to CNOOC and Mitra Energy has been pending since 2006 with the Office of the President (OP). SC 57 is currently under force majeure but exploration activities will resume once approval is granted.

 
 
 
 
Project Title : Service Contract 58 – West Calamian
 
Project Location : Offshore Northwest Palawan
 
JV Partners and Percent Equity : Nido Petroleum (Operator)                 50%

PNOC EC                                          50%

 
Project Description: SC 58 was awarded to PNOC EC on 12 January 2006. It is a deep water acreage covering an area of 13,440 sq. km. west of SC 57 and SC 38 in the offshore Northwest Palawan.

Nido Petroleum Ltd. of Australia farmed-in into SC 58 in 2006 and acquired 50% participating interest and operatorship of the block.

 
Brief Background: About 6,000 km of 2D and about 660 square km of 3D seismic data were acquired in the block resulting in the identification of several prospects and leads. To de-risk the prospects and identify the most attractive one to drill, geological, geochemical, and special geophysical studies were also done.

However, being within the disputed area with China, problems in continuing the exploration activities surfaced. By In December 2014, DOE granted a suspension of the activities while the arbitration was ongoing.

 
 
 
 
Project Title : Service Contract 59 – West Balabac
 
Project Location : Offshore Southwest Palawan
 
JV Partners and Percent Equity : PNOC EC            100%
 
Project Description: SC 59 was awarded to PNOC EC by the DOE on 13 January 2006. It covers an area of 14,760 sq. km. in offshore Southwest Palawan and is located north of recent deep-water gas discoveries in offshore Malaysia.

BHP Billiton farmed-in into SC 59 in 2009 acquiring 75% working interest and operatorship but later withdrew in 2013.

 
Brief Background: In 2006, PNOC EC acquired 2,000+ km. of 2D seismic data to promote the area.  This was successful with BHP farming-in.  As part of their commitment, BHP acquired 3,000 sq. km. of 3D seismic data and 5,000 km. of 2D seismic data. Their seismic program, one of the largest by a single company in the Philippines, resulted in several drillable targets.

In 2016, about 3,000 km of 2D data was acquired and processed in the shallow-water portion of the block. It also includes the acquisition of gravity and magnetic data. These new data aims to identify shallow-water drilling targets to complement the deepwater prospects earlier identified in SC 59.

PNOC EC now holds 100% interest and is farming-out the block.

 
 
 
 
Project Title : Service Contract 63 – East Sabina
 
Project Location : Offshore Southwest Palawan
 
JV Partners and Percent Equity : PNOC EC (Subject to DOE Approval))         40%

NIDO Petroleum (Operator)                       50%

 
Project Description: SC 63 was jointly bidded and awarded to PNOC EC and Nido Petroleum on 24 November 2006 with each holding 50% interest. In 2014, Dragon Oil farmed-in acquiring 40% interest.  With the farm-in, PNOC EC’s interest was reduced to 40% and Nido to 20%.
 
Brief Background: As part of the SC 63 commitment, 3,254 km 2D and 754 square km 3D seismic data were acquired over the area with focus around the Abo-abo well, which flowed gas when drilled in the early 80s.  Several interesting drillable targets were mapped co-relatable to the Abo-abo discovery.  The presence of an active petroleum system attracted Dragon, which led to their farm-in.

The Baragatan-1A Well was drilled in May to July, 2014 and encountered several thin gas-charged zones, which were deemed non-commercial.  In November 2015, Dragon decided to withdraw from the block.

On 10 March 2016, the DOE granted a three-year (3) technical moratorium from November 2015 to November 2018 to allow the partners to further study the block prior to committing to drill a well.

 
 
 
 
 
 
Project Title : Service Contract 74 – Northwest Palawan
 
Project Location : Northwest Palawan Basin
 
JV Partners and Percent Equity : PXP Energy Corp. (Operator)                      70%

(formerly Philex Petroleum)

Philodrill Corporation                                 25%

PNOC EC                                                  5%

 
Project Description: SC 74 was awarded by the DOE to joint bidders Pitkin Petroleum Limited (Pitkin) and Philodrill Corporation on 13 August 2013 during the 4th Philippine Energy Contracting Round.

The Service Contract covers an area of 429,184 hectares in the offshore Northwest Palawan Basin with water depths ranging from less than 10 m. to about 200 m. and about 278 km. southwest of Manila and approximately 150 km. northwest of Puerto Princesa, Palawan.

PNOC EC acquired its 5% participating interest from Philodrill which was approved by the DOE on 5 November 2015. Philodrill, which originally held 30%, now has 25% interest in the block. On 5 April 2016, DOE approved Pitkin Petroleum’s transfer of its 70% interest and operatorship to PXP Energy Corp. (formerly Philex Petroleum).

 
Brief Background: The SC 74 Consortium has conducted geological and geophysical studies including purchase of 3D seismic data and reprocessing of selected 2D seismic data as part of the initial commitment. In 2016, about 1,600 km of 2D seismic data covering the block was acquired and processed aside from gravity and magnetic data. All these new data will be undergoing interpretation during the year.

The SC 74 Consortium is also undertaking evaluation of the Linapacan-A and Linapacan-B oil discoveries for possible commercial development.

 
 
 
 
Project Title : Service Contract 75 – Northwest Palawan
 
Project Location : Northwest Palawan Basin
 
JV Partners and Percent Equity : PXP Energy Corp. (Operator)                      50%

(formerly Philex Petroleum)

PNOC EC                                                  35%

PetroEnergy Resources Corporation             15%

 
Project Description: SC 75 was a successful joint bid of Philex Petroleum (now PXP Energy), PetroEnergy, and PNOC EC for Area 4 under the 4th Philippine Energy Contracting Round awarded by the DOE on 27 December 2013. It covers an area of 6,160 sq. km. in the offshore Northwest Palawan Basin with water depths at 1,000 to 2,600 m. It is located west of SC 58 and north of SC 63.
 
Brief Background: The SC 75 Consortium conducted 2D seismic acquisition survey in 2014 and acquired about 2,235 km. of 2D seismic data over the block. It also acquired 2,337 km gravity and magnetic data aside from the reconnaissance satellite gravity data. These data were all processed and then interpreted to determine the prospectivity of the block.

However, there were uncertainties in continuing the exploration activities in the block being within the disputed area with China. On 9 September 2015, the DOE granted force majeure to SC 75 work commitments for Sub-Phase 2 effective in December 2015 until the DOE notifies PXP Energy to resume its petroleum-related activities.

 
 
 
 
Project Title : Domestic Petroleum Production
 
Project Location : Petroleum areas in the Philippines outside of PNOC EC’s existing SC blocks
 
JV Partners and Percent Equity : None
 
Project Description: To acquire new areas for petroleum exploration and production (E&P) through bid rounds and farm-in opportunities.
 
Brief Background: The project involves evaluation of open areas and petroleum blocks offered by the DOE through bid rounds (Philippine Energy Contracting Round or PECR) and by service contractors through farm-in opportunities. PNOC EC will acquire new blocks if technically, economically, and legally feasible.
 
 
 
 
Project Title : Overseas Petroleum Exploration
 
Project Location : Petroleum areas overseas (with focus in Asia-Pacific)
 
JV Partners and Percent Equity : No existing project yet
 
Project Objectives: To acquire new areas for petroleum exploration and production (E&P) through bid rounds and farm-in opportunities.
 
Project Description: The project involves evaluation of open areas and petroleum blocks overseas offered through bid rounds and farm-in opportunities. PNOC EC aims to acquire new blocks if technically, economically, and legally feasible.
 
Brief Background: In 2005, PNOC EC was mandated to expand its upstream petroleum investment overseas. The company has evaluated farm-in opportunities offered by international oil companies which included blocks in Southeast Asia, Africa, Middle East, Australia, South America and the USA. PNOC EC has also evaluated offered blocks in petroleum bid rounds in Colombia and Myanmar. No firm investments have materialized so far. PNOC EC is now prioritizing evaluation and eventual acquisition of producing assets with focus in the Asia pacific.
 
 
 
 
Project Title : COC 41, Zamboanga Sibugay Coal Project
 
Project Location : Zamboanga Sibugay
 
Nature of Project : Coal Mining
JV Partners and Percent Equity : None
 
Project Objectives: To explore and develop the Coal Operating Contract as part of PNOC EC’s commitment to harness indigenous sources of energy.
 
Project Description: PNOC EC conducts exploration activities in COC 41 within the Malangas Coal Reservation in Zamboanga Sibugay, which includes Sta. Barbara-Little Baguio-Malongon, and Area 1-Gotas areas. PNOC EC also supervises several small scale coal mining permittees within the concession area.
 
Brief Background: PNOC EC started mine operations of the Integrated Little Baguio Coal Project on 16 March 2009. Said mine was previously operated by PNOC EC’s Joint Venture (JV) partner, the Taiwan Overseas Mining Co. (Phils) Inc. (TOMC). Major repair and rehabilitation was conducted in order to save the mine from premature deterioration. However, due to unfavorable coal prices in the market, all development and production activities in ILB were stopped since March 2013.

The Lumbog Coal Project covers an area of about 170 hectares and has a mineable reserve of 1,400,000 MT with a mine life of eight (8) years. The project has a projected 200,000 tons annual production.

Further, the Company continues conducting detailed exploration drilling in the Area 1-Gotas North Limb area and has completed exploration in the Sta. Barbara-Little Baguio, Malongon area which are also parts of the COC. PNOC EC completed the feasibility study for the Lower Butong Coal Project in 2015. A pre-feasibility study for the Sta. Barbara-Little Baguio area has been prepared.

The Department of Energy (DOE) granted on 22 June 2012 the 18-year extension of COC 41 until 13 August 2030.

In 2015, PNOC EC decided to pursue the conduct of valuation of coal assets to decide on the implementation of either a “Long-term Coal Supply Agreement” or “Deed of Assignment” scheme.

 
 
 
 
Project Title : COC 122, Isabela Coal Mine-mouth and Power Plant Project
 
Project Location : City of Cauayan and Municipalities of Benito Soliven and Naguilian, Province of Isabela
 
Nature of Project : Coal Mining and Power Plant Operation
JV Partners and Percent Equity : None
 
Project Objectives: PNOC EC aims to promote the use of indigenous coal sources and augment the energy demand requirement of Isabela and the country as a whole.
 
Project Description: The Project is a pioneering undertaking. It seeks to utilize low rank indigenous coal to fuel an electric power plant employing “progressive mining and rehabilitation method” and “clean coal” technology.

COC 122 is located approximately 300 kilometers north of Manila and includes portions of the City of Cauayan and the municipalities of Naguilian and Benito Soliven, all within the province of Isabela, in the Cagayan Valley region. Isabela Province is located at the northeastern part of Luzon and project areas are mostly rolling and with grazing and barren lands, denuded forests, and corn plantations.

 
Brief Background: The Project is being undertaken by virtue of COC 122 awarded by the DOE to PNOC EC, giving the Company exclusive exploration rights over nine (9) coal blocks, totaling 9,000 hectares. COC 122 was converted to “development and production” contract from “exploration” contract in 2002. In 2010, the Company acquired the ECC for both the mine and the power plant.

In January 2014, PNOC EC submitted a JV Proposal to the NEDA-ICC to develop the mine and the mine-mouth power plant as an integrated project in partnership with the private sector consistent with the 2013 NEDA revised JV Guidelines.

JV proposal was presented to the NEDA ICC – Technical Board (ICC TB) and NEDA ICC – Cabinet Committee on 15 July 2014 and 5 August 2015, respectively. The ICC-Cabinet Committee however deferred its decision to endorse the proposal to the NEDA Board pending, among others, the approval of the GCG, and DOJ’s opinion that PNOC EC cannot enter into the power generation business.

During the year, PNOC EC also continued the conduct of Corporate Social Responsibility (CSR) and Information, Education, Communication (IEC) activities to maintain the support of the communities.

In June 2016, PNOC EC was able to secure a favorable DOJ opinion that it can enter into power generation business. PNOC EC also provided livelihood programs in Cauayan City, the planned location of the power plant.

 
 
 
 
Project Title : COC 184 Trento, ADS – Lingig, SDS Coal Project
 
Project Location : Agusan del Sur – Surigao del Sur
 
Nature of Project : Coal Exploration
JV Partners and Percent Equity : None
 
Project Objectives: To explore and develop the Coal Operating Contract as part of PNOC EC’s commitment to harness indigenous sources of energy.
 
Project Description: The coal exploration site is located in the municipality of Trento in Agusan del Sur, and at the municipality of Lingig in Surigao del Sur. The COC covers an area of 3,000 hectares spread over three (3) coal blocks. Two (2) blocks are former blocks of PNOC Coal Corporation which were relinquished in the mid-1980’s. No exploration holes have been drilled in the area, though exploration and production in the block north of the area merits that the coal potential of the area be investigated further.
 
Brief Background: PNOC EC was awarded COC 184 through PECR4 for coal on 15 February 2013.

In 2014, the NCIP Surigao del Sur submitted the Field-Based Investigation (FBI) report for COC 184 which states that the COC overlaps with a CADT application area; thus requiring PNOC EC to undergo the Free and Prior Informed Consent (FPIC) process.

During the same year, PNOC EC together with the security consultant conducted initial field data gathering on the peace and order situation in COC 184 from the Eastern Mindanao Command in Davao City and from the municipality of Trento, Agusan del Sur.

In 2015, PNOC EC continued coordination with the DOE on its request for relinquishment of the COC in view of the fragile peace and order condition in the area.

 
 
 
 
Project Title : COC 185 Zamboanga Sibugay Coal Exploration
 
Project Location : Buug-Malangas, Zamboanga Sibugay
 
Nature of Project : Coal Exploration
JV Partners and Percent Equity : None
 
Project Objectives: To explore and develop the Coal Operating Contract as part of PNOC EC’s commitment to harness indigenous sources of energy.
 
Project Description: PNOC EC intends to conduct exploration activities in COC 185 including geologic mapping, block boundary survey and drilling of about twenty-two (22) drillholes to determine the extent, volume, behavior and quality of coal seams for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country.
 
Brief Background: COC 185 is located on the northeastern end of the Malangas Coal District, Sibugay Peninsula where underground coal mines are extensively worked. Adjacent to its location are two development and production COCs, COC 41 (PNOC EC) and COC 130 (Brixton Energy & Mining Corp.).

COC 185 covers an area of about 2,000 hectares and spans across numerous barangays; Brgy. del Pilar of the municipality of Malangas and Barangays Danlugan, Mabuhay, Maganay, del Monte and Bagong Borbon of the Municipality of Buug, Zamboanga Sibugay.

On 15 February 2013, the DOE granted PNOC EC the COC 185 for the two (2) year exploration of two (2) coal blocks. On 3 December 2014, the DOE approved PNOC EC’s request for an extension of COC 185 to 14 February 2017, citing as a reason NCIP’s inability to issue the Certificate of Precondition which is a prerequisite to do any exploration work.

In 2014, the National Commission on Indigenous Peoples (NCIP) Region IX provided PNOC EC a map that shows that COC 185 overlaps with the Buug Certificate of Ancestral Domain Title (CADT).

During the Field-Based Investigation (FBI) conducted by the NCIP Provincial Office in 2014, it was noted that Malangas also had a pending application for the delineation and titling of their Ancestral Domain with the NCIP.

The Free, Prior, and Informed Consent (FPIC) Process of the NCIP started with the first Community Assembly in October 2015. The FPIC Process for COC 185 lasted until November 2016.

The NCIP Provincial Office conducted the Consensus-Building Meetings and Decision Meetings for the two municipalities covering COC 185 on 29 to 30 November 2016. The signing of the MOA between PNOC EC, leaders of the Indigenous Peoples living in the two municipalities covered in the project areas, and the NCIP took place on 15 December 2016.

 
 
 
 
Project Title : COC 186 Zamboanga Sibugay Coal Exploration
 
Project Location : Imelda-Malangas, Zamboanga Sibugay
 
Nature of Project : Coal Exploration
JV Partners and Percent Equity : None
 
Project Objectives: To explore and develop the Coal Operating Contract as part of PNOC EC’s commitment to harness indigenous sources of energy.
 
Project Description: COC 186 is composed of five (5) coal blocks and has a total area of slightly more than 5,000 hectares. It is situated directly south of COC 41. It encompasses twenty-four (24) barangays across the municipalities of Imelda and Malangas.

PNOC EC intends to conduct exploration activities in COC 186 including geologic mapping, block boundary survey and drilling of at least forty-two (42) drillholes to determine the extent, volume, behavior and quality of coal seams for possible coal mining operations in line with the DOE’s directive to explore and develop indigenous energy resources of the country.

 
Brief Background: COC 186 is located on the central part of the Malangas Coal District in the Sibugay Peninsula where underground coal mines are extensively worked. Adjacent to its location is COC 41 (PNOC EC).

On 15 February 2013, the DOE granted PNOC EC the COC No. 186 through PECR4 for coal. The Contract is for a two (2) year exploration of five (5) coal blocks covering an area of approximately 5,000 hectares.

On 3 December 2014, the DOE approved PNOC EC’s request for an extension of COC 186 to 14 February 2017, citing as a reason NCIP’s inability to issue the Certificate of Precondition which is a prerequisite to do any exploration work.

In 2014, the National Commission on Indigenous Peoples (NCIP) Region IX provided PNOC EC a map that shows that COC 186 overlaps with the Imelda Certificate of Ancestral Domain Title (CADT).

During the Field-Based Investigation (FBI) conducted by the NCIP Provincial Office in 2014, it was noted that Malangas also had a pending application for the delineation and titling of their Ancestral Domain with the NCIP.

The Free, Prior, and Informed Consent (FPIC) Process of the NCIP started with the first Community Assembly in October 2015. The FPIC Process for COC 186 lasted until November 2016.

The NCIP Provincial Office conducted the Consensus-Building Meetings and Decision Meetings for the two municipalities covering COC 186 on 28 to 29 November 2016. The signing of the MOA between PNOC EC, leaders of the Indigenous Peoples living in the three municipalities covered in the project areas, and the NCIP took place on 15 December 2016.

 
 
 
 
Project Title : Oil Trading
 
Project Location : Bangladesh and other countries
 
Nature of Project : Oil Trading
JV Partners and Percent Equity : None
 
Project Objectives: To generate additional income for the company through engaging in marketing and distribution of petroleum products.
 
Project Description: PNOC EC is engaged in the oil trading business since early 2009 by initially supplying oil products to the state-owned Bangladesh Petroleum Corporation (BPC) through private trading agents.
 
Brief Background: PNOC EC’s long-term objective is to be a key player in the local downstream sector by trading petroleum products within the country. PNOC EC’s current trading operations serve as a learning experience.
 
 
 
 
Project Title : Modular CNG Daughter Stations
 
Project Location : Barangay Bolbok, City of Batangas, Province of Batangas and Barangay Tubigan, City of Biñan, Province of Laguna
 
Nature of Project : Refilling Station
JV Partners and Percent Equity : None
 
Project Objectives: PNOC EC aims to develop, operate and maintain modular Compressed Natural Gas (CNG) stations, one in Barangay Bolboc, Batangas City and another one in Barangay Tubigan, Biñan City, Laguna, to replace the existing Mamplasan CNG station.
 
Project Description: PNOC EC has been mandated by the Department of Energy (DOE) to take over the role and obligations of the Pilipinas Shell Petroleum Corporation (PSPC) under the Natural Gas Vehicle Program for Public Transport’s (NGVPPT) “Pilot Phase”. In line with this, PNOC EC intends to develop, operate and maintain two Daughter Stations (DS). The DS are modular in design and can be decommissioned and can be easily transferred to different locations.

As in the existing mother-daughter scheme, gas supply in the form of CNG will be hauled from the CNG Mother Station (MS) in the Malampaya On-shore Gas Plant (OGP) at Tabangao, Batangas to the DS.

 
Brief Background: To address the worsening air pollution problem, the Philippine government through the DOE has embarked on a plan to use natural gas for transport consistent with Republic Act 8749. Natural gas, being recognized as a clean burning alternative fuel, has the potential to substantially lower pollutant emissions from motorized land vehicles.

With the issuance of the Executive Order (EO) No. 66 in January 2002, the DOE has been designated as the lead agency in ensuring the development of the natural gas industry. In October 2002, the government, through the DOE, launched the NGVPPT under EO290. The program stakeholders include the DOE as the implementing agency; the SC38 Malampaya Consortium, PSPC and eight bus operators.

In 2008 under the NGVPPT, an MS and a DS were established in Tabangao, Batangas and Barangay Mamplasan, Biñan City, Laguna, respectively. The MS is owned and operated by Shell Philippines Exploration B.V. (SPEX) in behalf of the Consortium members while the DS is by PSPC. The MS-DS scheme is now on its fourth year but due to technical and reliability issues, the DOE mandated PNOC EC to take over the role and obligations of PSPC under the NGVPPT Pilot Phase. However, PNOC EC and PSPC failed to reach an agreement for the take-over of the existing Mamplasan station in Biñan City. With the approval of the DOE and request of the bus operators, PNOC EC opted to establish two daughter stations in Barangay Bolboc, Batangas City to cater to CNG buses plying in the Batangas City-Manila route and also in Barangay Tubigan, Biñan City (in lieu of the Mamplasan station) for the Laguna-Manila route.

In 2014, PNOC EC met with the DOE on possible issues in the event that CNG offtake or the number of buses goes below the minimum requirement. A series of meetings among DOE, Department of Transport and Communications (DOTC), Land Transportation and Franchising Regulatory Board (LTFRB), PNOC EC and CNG Bus Operators was also held. The DOTC affirmed to grant 168 new franchises for CNG buses after the results of the JICA’s Origin-Destination Study and committed to announce the available routes in October 2014.

In 2015, the DOE has formally declared to extend the NGVPPT Pilot Phase from 2018 to December 2023 and requested the Consortium to enter into a new GSPA directly with PNOC EC. The review of the draft GSPA is ongoing. Additionally, a meeting was held between PNOC EC and the DOE EUMB Technical Working Group to discuss the updated project economics incorporating the updated diesel price and VAT schemes.

 
 
 
 
Project Title : Energy Supply Base
 
Project Location : Mabini, Batangas
 
Nature of Project : Private commercial port
JV Partners and Percent Equity : None
 
Project Objectives: Provides berthing, cargo handling, storage and warehousing facilities to PNOC EC clients.
 
Project Description: The Energy Supply Base (ESB) is a private commercial port located in Mabini, Batangas, which offers pier services, warehousing facilities, cargo handling, equipment rental, manpower services, bunkering and water services. It is owned and managed by PNOC EC.
 
Brief Background: In 1977, the Philippine Energy Supply Base (PESB) was created by Presidential Decree of President Ferdinand E. Marcos as per Letter of Instruction No. 563 to support the exploration activities in the Philippines. By 1994, PNOC EC absorbed the operation of the Energy Supply Base from Petron Corporation.

Although the ESB was initially set up to cater the logistical needs of PNOC EC and the domestic energy industry, it has since opened its services to other commercial clients with the granting by the Philippine Ports Authority (PPA) a Permit to Operate as private commercial port under Certificate of Registration No. 291 in October 8, 1996. The Permit to Operate is co-terminus with the 25-year foreshore lease agreement of ESB with the Department of Environment and Natural Resources (DENR) effective May 3, 1996.

ESB is also a Custom Bonded Warehouse which helps companies to expedite the unloading and loading of cargoes at ESB ports.

 
 
 
 
Project Title : Coal Trading and Marketing
 
Project Location : Malangas
 
Nature of Project : Coal Trading and Marketing
JV Partners and Percent Equity : None
 
Project Objectives: Maintain stable supply of coal for domestic requirements by engaging in marketing and distribution.
 
Project Description: In addition to selling coal produced from its mine/s, PNOC EC trades coal supplied by other producers both from domestic and foreign sources.
 
Brief Background: PNOC EC operates a terminal in Zamboanga Sibuguey to support its trading activities. This terminal serves as a receiving port, storage and blending yard for clients needing the services as well as buying station.
(page update February 15, 2016)