The Department of Energy has granted state-run firm PNOC-Exploration Corp. (PNOC-EC) an operating budget of P10.59 billion for this year.
Based on a document issued last January 9, bulk of the amount is allotted to pursue petroleum exploration projects at P7.47 billion, while P1.81 billion is for coal exploration and development activities.
The government’s share in the Malampaya gas project is allocated P766.31 million, P64.70 million is earmarked for capital expenditure for unspecified projects and another P477.86 million is for operating expenditures.
Last month, PNOC-EC exercised its right to match the offer of Udenna Corp. to Chevron for the operation of the Malampaya gas field.
Energy Secretary Alfonso Cusi said this allows the government-owned corporation to buy 10 percent of the 45 percent stake that will be acquired by Udenna.
When finalized, PNOC-EC’s stake in the entire Malampaya project will be equivalent to 14.5 percent from the current 10 percent, while the remaining 40.5 percent will be held by Udenna and 45 percent by Shell Philippines Exploration BV.
The Malampaya gas field is a very strategic project as it currently provides fuel to power plants with a combined capacity of more than 3,000 megawatts. However, the service contract to operate it is set to expire by 2024.
