PNOC-EC to put up 2 power plants
MANILA, Philippines–PNOC Exploration Corp., the upstream oil and coal arm of Philippine National Oil Co., plans to put up two power plants—one in Isabela and the other in Zamboanga Sibugay—worth $400 million or P17.2 billion.
Joseph Omar A. Castillo, PNOC-EC vice president for business operations, told reporters that the company was looking for joint venture partners for the two facilities, which will have a capacity of 100 megawatts each. The selection of a partner will be conducted through a competitive public bidding since PNOC EC is largely owned by the government.
The mine-mouth power plants will be constructed near PNOC-EC’s coal mines.
The planned power plants are expected to help boost the business climate and generate the much needed employment in the underserved provinces of Isabela and Zamboanga Sibugay, Castillo said.
At present, PNOC EC is developing three new prospective, high-grade coal mines within Zamboanga Sibugay under Coal Operating Contract No. 41, which covers Lumbog, Lower Butong and Sta. Barbara. This will allow the company to increase its coal production by 800,000 metric tons yearly. Current production under COC 41 is about 150,000 MT.
PNOC-EC chair and CEO Gemiliano Lopez Jr. earlier said the three mines were expected to start commercial production between 2012 and 2015, starting off with the Lumbog area next year. This area was estimated to have coal reserve of at least 1.4 million tons.
Another priority project of the company, Castillo said, was the drilling of an exploration well within Service Contract 63 off southwest Palawan, for which PNOC EC plans to spend P1.8 billion.
The amount will be shared equally by the partners in the SC 63 license. PNOC EC currently holds a 50-percent interest and is the operator of the field, while the remaining 50 percent is held by Australian firm Nido Petroleum Ltd.
Castillo said PNOC EC was likely to drill the well within the third quarter next year, but has yet to decide which of the prospects within SC 63 will be tapped by the joint venture.
