PNOC privatization delayed

The privatization of PNOC Exploration Corp. (PNOC-EC) has been pushed back to 2Q 2008 as its parent group has given priority on developing the oil deposit before the Malampaya gas field.
Dec. 18, 2007

Offshore staff

MANILA, Philippines -- The privatization of PNOC Exploration Corp. (PNOC-EC) has been pushed back to 2Q 2008 as its parent group has given priority on developing the oil deposit before the Malampaya gas field.

The Philippine National Oil Corp. (PNOC) is to award the contract for the Malampaya-Camago oil field, in which PNOC-EC has a 10% stake, according to Antonio Cailao, PNOC president.

Cailao says the oil field development would boost market value of PNOC-EC's initial public offer, which was initially expected in 1Q 2008.

Shell Philippines Exploration BV and Chevron Malampaya Llc, each with a 45% stake in the Malampaya gas field, have declined to participate in the oil deposit development, which experts believe could upset the gas flow from the deepwater field off Palawan Island.

The oil field development is expected to cost $1 billion.

12/18/2007

Sign up for our eNewsletters
Get the latest news and updates

Related

Middle East operators employing a range of brownfield strategies to boost production
Combined cycle power equipment evolving for fixed and floating platforms