PNOC-EC to turn over P2B in dividends to gov’t
PNOC-Exploration Corp., the upstream oil and coal arm of the state-run Philippine National Oil Co., on Friday released P2 billion in dividends, bringing the total cash it paid out to shareholders to P5.56 billion within this year alone.
Since the government holds a 99.79-percent stake in PNOC-EC, the bulk of the dividends, or about P1.99 billion, will go to state coffers.
PNOC-EC chair and CEO Gemiliano Lopez Jr. said in a statement that the hefty cash dividends were the fruit of “fiscal prudence and responsibility.”
Lopez stressed that the series of dividend declarations will not hinder PNOC-EC from fulfilling its mandate to seek sustainable energy sources such as oil, gas and coal.
At present, PNOC-EC is preparing to fund its share of investments for a proposed $1.5-billion expansion that will extend the life and increase the gas reserves of the Malampaya site off Palawan.
The company holds a 10 percent interest in Service Contract 39, which covers the Malampaya project. The remaining 90 percent is held equally by Shell Philippines Exploration BV and Chevron Malampaya.
Article continues after this advertisementPNOC-EC is also set to undertake exploration activities at three service contract areas.
Article continues after this advertisementAt SC 59 and SC 63, PNOC EC, along with partners BHP Billiton and Nido Petroleum Ltd., will begin exploratory drillings next year. At SC 37, PNOC EC is reportedly mulling over plans to drill an exploratory well sometime in 2012.
For its coal program, PNOC-EC reported that the development of the Lumbog mine within its concession area covered by Coal Operating Contract (COC) No.41 was “well underway.”
Once these developments have been completed, the company expects to produce at least 200,000 metric tons of high grade coal a year.
PNOC-EC is also expected to develop two additional mines in Sta. Barbara and Lower Butong—both in Zamboanga Sibugay, which is also covered by COC 41.
An additional P1.35 billion will be invested in developing the two mines, which are estimated to produce as much as 800,000 MT a year, starting 2015.
