THE government-run Philippine National Oil Co.-Exploration Corp. (PNOC-EC) has approved a P5.484-billion budget for the year, slightly higher than last year’s P5.02 billion. Official data also showed its net income last year grew by 22 percent to P3.027 billion from P2.476 billion in 2010.
Its revenues grew by 14 percent to P10.049 billion last year—from P9.939 billion in 2010—due to higher gas off-take and condensate liftings from the Malampaya gas-to-power project.
PNOC-EC also said revenues from the government’s 10-percent share from the Malampaya project reached P5.61 billion while revenues from trading and marketing operations reached P1.871 billion and coal-mining revenues P508 million last year.
It also attributed the higher revenues to the surge in earnings from its Energy Supply Base, its commercial port, which reflected a 325-percent revenue growth to P2 billion because of the substantial increase in the sale of fuel and lubricants (bunkering services) and increase in income from accommodation-rental due to higher occupancy rate than last year.
This year’s capital expenditure budget of PNOC-EC includes a carryover of P1.68 billion from the unused budget in 2011 for projects such as drilling of an exploration well in service contract 63 East Sabina in southwest Palawan, drilling and logging project in coal-operating contract 41 for the Sta. Barbara and Lower Butong areas and construction of a CNG daughter station in Batangas, which are all re-scheduled for implementation this year.
PNOC-EC said it is programmed to spend P1.51 billion for the Malampaya project this year, comprising 40 percent of the total investment budget, which pertains to the programmed regular capital expenses, operating expenses and investment spending of the consortium and which includes the subsea rejuvenation project.
Gemiliano Lopez Jr., PNOC-EC chairman and chief executive, said the firm finances its budget from internally generated funds and from the P14 billion in standby credit facilities it can tap.
PNOC-EC said petroleum exploration activities in the other areas will require P1.47 billion, of which P897.25 million is allocated for acquisition of new blocks, both in domestic and overseas areas that includes data purchase, geological and geophysical studies and exploration drilling.
“However, it should be noted that acquisition of new overseas blocks is contingent on the financial viability and technical evaluation of prospects,” the company said.
PNOC-EC said it allotted P357.9 million for well planning, exploration drilling and post-well evaluation in Service Contract (SC) 37 in Cagayan; some P201.90 million will be spent for seismic acquisition, processing and interpretation both in SC 47 in offshore Mindoro and SC 57 (Calamian).
1.93 million for coal exploration activities this year; P424.89 million will account for the exploration and initial development activities in the Lower Butong area and other development activities in the Lumbog area during the start of its production stage.
It said a contingent budget of P66.43 million was also allocated for exploration and due-diligence activities in line with its aim of acquiring new coal blocks both here and abroad.
PNOC-EC said the investment budget also includes P279.28 million for various development projects, namely the Isabela coal mine mouth power plant, the Malangas coal mine power plant and the compressed natural gas stations, and that it will spend around P62.63 million for the takeover of the Mamplasan CNG station in Laguna.
