Philippine National Oil Company

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Philippine National Oil Company
Type Government-Owned Corporation
Industry Oil, energy
Founded November 9, 1973
Headquarters Taguig, Philippines
Key people Antonio M. Cailao, President/CEO
Subsidiaries
Website PNOC Official website

The Philippine National Oil Company (PNOC) was created on November 9, 1973 by Mr. Rommel Ferrer as a government-owned corporation under Presidential Decree No. 334, to supply oil in the Philippines. Since then, its charter has been amended several times to include exploration, exploitation and development of all energy resources in the country.

Overview[edit]

PNOC was a product of the times. It was the Philippines’ response to the oil crisis that gripped the world in the 1970s. Before the oil embargo, there was easy and ready access to crude. But sudden upheavals in the global oil industry caught many, including the Philippines, unprepared and, therefore, vulnerable.

The Philippines’ government responded by founding PNOC and forging oil-supply partnerships with supplier countries. It later acquired refineries and petroleum transport and marketing firms with the aim of being a “total” energy company. PNOC also initiated the exploration of the country’s indigenous oil and non-oil energy resources. Its purpose was to build an energy sector that will bring energy independence to the country. Eventually, PNOC expanded its operations to include total energy development, including indigenous energy sources like oil and gas, coal, and geothermal.

PNOC Exploration Corporation is concentrating on its Oil and Gas businesses, the most popular and successful of which is the Malampaya Deepwater Gas-to-Power Project where, in December 1999, PNOC EC finalized its participation in the largest energy infrastructure undertaking in Philippine history. PNOC EC’s involvement in the project effectively joins it with the rank of such other petroleum majors as Shell Exploration (as Project Operator) and Texaco (Partner).

In 1993, PNOC also ventured into petrochemicals, setting up the Philippines' first petrochemical industrial estate in Limay, Bataan.

PNOC assumed the post as the Secretariat of ASEAN Council on Petroleum (ASCOPE) for the next 5 years effective May 2009, lending pride and prestige not only to PNOC but to the Philippines.

Subsidiaries[edit]

PNOC currently has 5 subsidiaries working together to realize PNOC’s vision: PNOC Exploration Corporation, PNOC Shipping and Transport Corporation, PNOC Development Management Corporation, PNOC Alternative Fuels Corporation and PNOC Renewables Corporation.

PNOC Exploration Corporation[edit]

PNOC Exploration Corporation is the upstream oil, gas and coal subsidiary of the state-owned Philippine National Oil Company. A government owned and controlled corporation, the Company was incorporated on 20 April 1976 and is mandated by the government through the Department of Energy (DOE) to take the lead in exploration, development and production of the country’s oil, gas and coal resources. The Company was listed in the Makati Stock Exchange and the Manila Stock Exchange in 1976 and 1977, respectively.

At present, PNOC EC has seven (7) petroleum Service Contracts (SCs), namely: SC 37 (Cagayan Basin), SC 38 (Malampaya), SC 47 (Offshore Mindoro), SC 57 (Calamian), SC 58 (West Calamian), SC 59 (West Balabac) and SC 63 (East Sabina). The Company is the operator in SC 37, SC 47 and SC 63 and a non-operating partner in SC 38, SC 57, SC 58 and SC 59.

PNOC EC used to operate the very first natural gas facility in the country- the San Antonio Gas Power Plant within SC 37 before joining the Malampaya consortium (SC 38) in 1999 with a 10% stake. Malampaya is the country’s single biggest investment of its kind.

PNOC EC also holds seven (7) Coal Operating Contracts (COCs), namely: COC 41 (Malangas), COC 122 (Isabela), COC 140 (Surigao del Sur), COC 141 (Isabela), COC 184 (Agusan del Sur), COC 185 (Zamboanga Sibugay) and COC 186 (Zamboanga Sibugay). As part of its coal business, the company also trades coal from other sources through its four (4) coal terminals located in Manila, Malangas, Batangas and Cebu.

The company likewise owns and operates a private commercial port – the Energy Supply Base (ESB) – in Mabini, Batangas which provides berthing, cargo handling, storage and warehousing facilities to its clients.

PNOC Shipping and Transport Corporation[edit]

The PNOC Shipping and Transport Corporation (PNOC-PSTC) is engaged in the business of shipping, tankering, lighterage, barging, towing, transport, and shipment of goods, chattels, petroleum and other products, marine, and maritime commerce in general.

At present, the company’s current fleet is composed of 4 tankers, 2 single-hulled tankers MTs Jose Rizal and Antonio Luna and 2 double-hulled tankers, MTs PNOC Lapu-lapu and PNOC Emilio Jacinto, with capacities from 25,000 to 32,000 barrels.

PNOC issued a notice of dissolution of PNOC Shipping effective March 15.The notice of dissolution was approved by the PNOC board.

PNOC Development Management Corporation[edit]

PNOC-DMC is 2% owned by private stockholders and is the only company in the PNOC Group the is empowered by its articles and by-laws to develop, manage and add value to the real estate properties which PNOC and the other subsidiaries hold. It is also empowered by its charter to engage in the business of developing vital energy infrastructure such as refineries, pipelines, pumping station and the like.

Incorporated on March 6, 1959, PNOC-DMC's predecessor FilOil Refinery Corporation (FRC) was engaged primarily in energy-related businesses and, secondarily, real estate development. By 1985, PNOC had acquired 98% of FRC shares, taking full control of the firm. In 1996, FRC became FilOil Development & Management Corporation (FMDC) and its main purpose switched from energy-related businesses to primarily real estate development. With its new directives, FMDC has been engaged in the development and management of 118 hectares in Rosario, Cavite. Twenty-five hectares have been devoted to a Socialized Housing Program (GMA AbotKayang Pabahay at Palupa) for 3589 informal dwellers. Thirty-two hectares have been developed into a middle-to-high income subdivision adjacent to a public market on 1.5 hectare land donated by PDMC. Within the 32-hectare property is a 5-hectare area which has already been sold to SM group –further enhancing the real estate values of PDMC properties. Forty-two hectares have already been sold and developed as an expansion site for the Cavite Export Processing Zone.

In December 2002, FDMC became PNOC Development Management Corporation.

PNOC Alternative Fuels Corporation[edit]

The PNOC Alternative Fuels Corporation (PNOC-AFC), formerly PNOC Petrochemical Development Corporation, was established in July 2006. Its primary mandate is to explore, develop and accelerate the utilization and commercialization of alternative fuels in the country.

As a secondary mandate, the PNOC-AFC shall also pursue the development, operation and management of a petrochemical industrial estate. The complex, located in Limay and Mariveles, Bataan, which is approximately 530 hectares, is to be developed in phases

PNOC-operated geothermal power station in Valencia, Negros Oriental.

PNOC Renewables Corporation[edit]

PNOC Renewables Corporation (PNOC RC) is a fully owned subsidiary of state-owned Philippine National Oil Company (PNOC). Organized in March 7, 2008, it is the newest PNOC subsidiary.

PNOC RC will be the primary vehicle of PNOC in promoting, developing and implementing new and renewable energy sources in the country. Through renewable energy, the country would be able to reduce its dependence on imported oil, while mitigating climate change. Renewable energy is an important component in the country's drive towards energy self-sufficiency, security and independence.

Renewable energy projects include:

  • Hydropower Projects
  • Wind Project
  • Biomass and/or Waste to Energy Projects
  • Solar Electrification Projects
  • Geothermal Projects

External links[edit]

References[edit]