PNOC EC Makes P740 Million Net Income in Q1

The PNOC Exploration Corporation (PNOC EC) yesterday bared a net income of P741.94 million from its petroleum, gas and coal operations and trading for the first quarter of the year 2012, higher by P61.08 million or nine percent over the net income for the same period in 2011.

PNOC EC Chairman and Chief Executive Officer Mel Lopez disclosed that the state-owned corporation, which is publicly listed in the stock market, earned gross revenues amounting to P2.49 billion from January to March 31, 2012, greater by four percent or higher by P82.9 million than the gross revenues for the 3-month period from January to March last year (2011), totaling only P2.40 billion.

According to Lopez, the exemplary financial performance of PNOC EC during the first quarter was due to the substantial increase in its production and sale of larger volumes of condensate and gas, which are supplied to local power plants at competitive prices.

It also benefitted from its ten percent share from the ever-increasing proceeds from the Malampaya Deepwater Gas-to-Power Project based in Palawan together with its project partners, Shell Philippine Exploration B.V., the operator, and Chevron Malampaya LLC.  Shell and Chevron has a 45 percent stake each in the consortium.

Lopez said that 2012 will see the expansion and intensification of PNOC EC’s exploration, production and processing of oil, gas and coal from indigenous sources, so as to supply sufficient and stable power for the country’s power plants, industries, commerce, social and physical infrastructures and institutions.

PNOC EC now supplies coal and gas to four power plants (the Ilijan, Sta. Rita, San Lorenzo, and Naga Coal-Fired Plant) and plans to establish additional power plants to augment the country’s supply of electricity. These power plants are being planned for Zamboanga Sibugay and Isabela provinces. In 2011, PNOC EC produced 182.9 thousand metric tons of coal, mostly for local consumption.

PNOC EC currently is in the process of exploration, drilling and developing petroleum service contracts for potential oil deposits throughout the archipelago. They are Service Contract 37 covering the Cagayan Basin, SC 43 at Ragay Gulf, SC 47 offshore Mindoro, SC 57 Calamian Islands off Northwest Palawan, SC 58 West Calamian, and SC 59, West Balabac, also off Palawan.

PNOC EC also implements four existing coal operating contracts (COC), one of which is already in the process of production that supply coal to several power stations under Coal Operating Contract No. 41.

Other coal exploration projects are in the exploration and production stage, including COC 122, the Isabela Coal Mine and Power Plant Project; COC 140, covering the municipalities of Cagwait and Tago in Surigao del Sur; COC 141, the Isabela Coal Exploration Project and other areas.  PNOC EC is also exploring prospects for new ventures in Indonesia and Brunei.

The PNOC Board of Directors has programmed an estimated P20 billion for its operations and exploration activities from 2012 to 2016.