PNOC EC Seeks Partners for Power Plant Projects

Bonifacio Global City. January 25, 2013. PNOC Exploration Corporation, the upstream oil, gas and coal exploration and development arm of state-owned Philippine National Oil Company, is currently seeking partners to develop two mine-mouth coal-fired power plants, one each in Isabela and in Zamboanga Sibugay.

The Isabela power plant is intended to utilize the lignite coal within PNOC EC’s coal concession in the area which has reserves estimated to be sufficient for a 100MW station. The JV partner for the Isabela project will be involved in the mine and power plant development as well as in operating the power station and marketing the generated electricity. Meanwhile, the proposed power project in Zamboanga Sibugay will utilize the bituminous coal reserves from PNOC EC’s Malangas coal mines. Coal reserves from this area, which are estimated to be sufficient for a 50-100 MW station, are of high quality and suitable for blending with imported coal. The JV partner for the Zamboanga Sibugay project will be involved in the development and operation of the power plant as well as marketing the generated electricity.

PNOC EC intends to maintain minority stakes in both projects and will seek out partners following the JV guidelines issued by the National Economic and Development Authority. The competitive selection process is expected to commence by first quarter of 2013.

The company has engaged The Lantau Group as transaction advisor for the two projects. A briefer for potential partners can be downloaded here.