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Aug 24, 2020

Message of the President & CEO

 

FIGHTING THE GOOD FIGHT
(delivered during the Virtual Flag Ceremony, 24 August 2020)

We live in truly trying times.

We are only halfway through the year, and already it feels like a decade has passed. 

Some have chosen to simply write off 2020 as a lost year, and with the COVID-19 turning into a global pandemic that has adversely affected millions worldwide, that seems like the only reasonable thing to do. After all, COVID 19 has literally brought the entire planet to a screeching halt. Businesses, schools, even churches – big and small, local and international – all had to close their doors, shutter their premises, and cease their services, as we struggle to stop the contagion, to keep our loved ones and ourselves safe. 

On the other hand, some choose to keep pushing forward, to keep striving towards their goals, to keep their eyes on the prize. No matter how hard we’ve been hit, no matter how badly we’ve fallen, no matter how long we’ve struggled, we will get back up, we will shake off the pains, and we will keep fighting the good fight.

From the time I was in the Philippine Military Academy, to the day I retired as Commanding General of the Philippine Air Force, no matter what the odds are, no matter how tough the battles may be, no matter how strong the opposition seems, I have always chosen to fight the good fight.
 

PNOC EC and the Fight Against COVID

PNOC Exploration Corporation is a model Government Owned and Controlled Corporations and we consistently punch way above our weight. When the National Government, under the very able leadership of President Rodrigo Roa Duterte, sounded the call for all agencies and instrumentalities to join the fight against COVID 19, PNOC EC was among the first to respond, remitting over Two Billion Pesos to the National Treasury in support of the President’s call. 

PNOC EC also donated Personal Protective Equipment and other supplies to the Philippine Army, our good neighbors here in Fort Bonifacio. We also donated PPE to the AFP Health Service Command at the AFP General Hospital in V Luna in Quezon City. We wanted to make sure that those at the frontlines actually fighting the disease, especially the doctors actually treating those infected, and the soldiers enforcing the quarantines, would be fully protected as they carried out their difficult and high risk duties. 

In our company facilities, we strictly adhere to all of the safety protocols being implemented by the government: wearing of face masks, social distancing, constant cleaning and disinfecting of our facilities and material, as well as regular hand washing, monitoring of temperature, controlled ingress and egress, and alternative work arrangements. I have always made it a priority to take care of the people I lead, because I fully appreciate that it is also their dedication, effort and hard work that makes my job easier.

PNOC EC Moving Forward

As a GOCC, PNOC EC continues to fulfill its mandate to explore and develop indigenous sources of energy for our country and people.

We are fully aware that the so-called New Normal will be with us for a while, and we will have to work with these new realities and overcome these new challenges. 

Our strategic direction moving forward therefore is going to prioritize projects that are doable and that are expected to generate cash flow.  Our main objectives are:
1.    Optimizing the value of Coal Operating Contract 41 (COC 41) projects that can potentially replace the diminishing revenue from Malampaya (SC 38). 
2.    Maximizing the use of remaining funds to generate cash for Operations. 
3.    Continue exploration plans and programs for the other SC’s and COC’s in the Company’s Portfolio.

More specifically, PNOC EC will pursue the following initiatives:

COC 41 Projects will generate cashflow despite the current downtrend in energy prices and can sustain the company’s operations with good management.
•    Development of a coal mine in COC 41 Mine 3 area that can potentially generate cashflow despite the current downtrend in energy prices and can sustain the company’s operations.
•    Further exploration in SC 57 Calamian considering available technical data that presents the potential of the block. However, PNOC EC needs to find a partner on this project to spread risk and share in cost. 

Based on our data, SC 57 (Calamian) has good potential, but needs to be farmed-out to find a good joint venture partner.

SC 37 (Isabela) remains very viable project. The drilling of the Chico prospect may be considered once the energy situation recovers, particularly the benchmark world crude prices.
•    Drilling of the Chico prospect in SC 37 Cagayan where PNOC EC used to operate the 3MW San Antonio Gas Power Plant until 2028.
•    Development of a 50MW coal-fired power plant in COC 122 Isabela
•    Development of other prospects in SC 38 Malampaya to augment existing production, while the Consortium works on obtaining the license extension 

COC 122 development activities may still be pursued considering various challenges such as permitting, Local Government endorsements, and land acquisition and relocation, among others.

As the government representative in the SC 38 Consortium, PNOC EC together with our Partners are currently working on the approval of our License extension which is expiring in 2024.  Based on the study made by the Consortium, gas production of the Malampaya Deep Water Gas-to-Power project can be sustained beyond 2024.

All of these projects will assure sustained cash flow for PNOC EC allowing us to remain among the top performing GOCC’s well into the foreseeable future.

Faith Shall Overcome

On a personal note, I have always believed that God never gives us anything that, by His Grace and with His Blessings, we cannot handle. There is neither a wrong time to do the right thing nor the right time to do the wrong thing. There is no challenge that cannot be overcome, no difficulty that cannot be pulled through, no enemy that cannot be beaten if we have Faith in God. 

All of us have our personal struggles and battles, and perhaps these were made harder by the pandemic that we are all still trying to combat. I ask all of you – the good men and women of PNOC EC – to keep the faith.

Now, more than ever, in spite of the tough environment, is the time for all of us to strive even harder to push our company forward, fulfill our mandate, and achieve our goals.

Thank you.


To God be All the Glory!
 

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