The Philippine Star
06/10/2006
State-owned Philippine National Oil Co. (PNOC) is looking into the possibility of undertaking an initial public offering (IPO) of its subsidiary, PNOC Shipping and Transport Corp. (PSTC).
PNOC president Eduardo Manalac said an IPO is one of the options being considered in privatizing the shipping company’s shares. Another privatization scheme being eyed for PSTC is the direct sale of assets, particularly its tankers.
Manalac said they may also consider allowing a joint venture partner to buy into the shipping company.
"We are yet to come up with a decision on how we would privatize PSTC," he said.
PSTC is primarily 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.
The company presently maintains four tankers ( three owned and one chartered-in tanker) with capacities ranging from 23,000 barrels to 30,000 barrels. PSTC operates to transport petroleum products within the country.
PSTC has been envisioned to become the strategic leader in the marine transport of energy resources, through its professional team providing quality service to its customers.
It aims to be the best provider of quality tankers and allied services through customer-centric business approach and ISO-certified quality systems and procedures.
One of PSTC’s clients is Petron Corp., the country’s largest oil refiner and also one of the subsidiaries of PNOC.
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The Philippine Star
06/05/2006
The Philippine National Oil Co. (PNOC) is optimistic that its joint venture oil and gas exploration with Vietnam Oil and Gas Corp. (PetroVietnam) and China National Offshore Oil Co. in the South China Sea will yield positive results, a top company official said.
"We are very positive we can develop good prospects that would eventually lead to drilling operations," PNOC president Eduardo V. Mañalac said.
Mañalac, however, said that they have yet to finalize the interpretation of the seismic data gathered from the said area.
"We have already completed the survey on 11,000 kilometers – and the data has already been processed and the interpretations are ongoing here at the PNOC grounds (the Chinese and Vietnamese team interpreting it with us). We expect to complete the interpretation by later or early fourth quarter of the year, which would help us make a decision as to what to do next on whether we would plan a second phase of seismic or decide to drill it," he said.
PNOC, CNOOC and PetroVietnam last year formed a joint operating committee that will implement the pre-exploration studies for oil and gas in the South China Sea.
Under a Joint Marine Seismic Undertaking (JMSU) Agreement, signed in Manila on March 14, 2005, the three companies agreed to jointly acquire geoscientific data to assess the petroleum resource potential of particular areas in the South China Sea.
The landmark agreement will help transform a previous area of conflict into an acreage for possible cooperation and benefit.
The JMSU covers a three-year joint research by PNOC and CNOOC of the petroleum resource potential in certain areas of the South China Sea.
The study will be a pre-exploration study solely to collect, process and analyze seismic data. No drilling or development is covered under the study.
Under President Arroyo’s five point energy independence agenda, the Philippines will actively develop its indigenous oil and gas resources using PNOC as its lead agency to form strategic alliances with other countries like China.
JMSU is the first concrete step after ASEAN and China adopted the ASEAN-China Declaration on the Conduct of Parties in the South China Sea signed in Phnom Penh in November 2002.
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The Philippine Star
06/05/2006
The Energy Regulatory Commission (ERC) has ordered the National Power Corp. (Napocor), National Transmission Corp. (TransCo), distribution utilities (DUs) and all regulated entities to submit monthly reports on customers who are enjoying preferential rates.
The new ruling, the ERC said, is pursuant to Republic Act 9136 or Electric Power Industry Reform Act (EPIRA) of 2001 which mandates the commission to protect public interest as it is affected by the rates and services of electric utilities and other providers of electric power.
The commission said this resolution is also pursuant to the Department of Energy Act of 1992 and Sections 19 and 43 of the EPIRA which enables the ERC to have power to determine, fix, prescribe and regulate the rates being charged by all DUs, TransCo and Napocor to their customers.
According to ERC, they have to monitor the granting of preferential rates which may lead to cross-subsidies to the other customers of the said DUs, TransCo and Napocor.
"To protect the interest of the electricity consumers who are not granted preferential rates, the impact of the preferential rates granted by all DUs, TransCo, Napocor and other regulated entities must necessarily be monitored.
Section 74 of the EPIRA mandated the commission to phase out all cross-subsidies within the grid, between grids and/or class of customers.
The ERC said the report should be submitted every 15 day of each month and should include: the list of customers enjoying preferential rates; kilowatthours sold to the said customers; approved preferential rate for each customer; and the level of voltage these customers are connected to.
Last year, the ERC ordered the removal of the cross-subsidies extended by DUs to their customers.
The current inter-class subsidy levels will be removed in two equal steps: 50 percent last November 2005 and the remaining 50 percent in November 2006.
The two-step removal will mitigate the bill impact of the EPIRA-mandated process to the currently subsidized residential sector.
The completion of the intra-grid cross-subsidy removal of TransCo will reduce transmission charges of Meralco residential customers by six centavos per kilowatthour (kWh) and P20.42 per kW for commercial and industrial users.
The net effect of the two subsidy reduction efforts for residential customers will be 15 centavos per kWh.
For an average Meralco residential customer consuming 200 kWh per month, this is an add-on of P1 to his daily electricity bill of around P50.
While EPIRA mandates the removal of inter-grid, intra-grid, and inter-class cross-subsidies over a period of three years, ERC has the power to extend the removal process to consider its adverse effect particularly on the residential end-users.
Lifeline subsidies are, however, exempted from the cross-subsidy phase-out for a period of 10 years unless extended by law.
Despite the gradual removal of cross-subsidies, Meralco residential customers consuming 50 kWh and below per month will continue to enjoy a 50-percent discount on their monthly bill; those consuming 51 to 70 kWh, a 35-percent discount; while those consuming 71 to 100 kWh, a 20-percent discount.
Meralco’s lifeline users numbered more than 1.5 million as end-2005, comprising 38 percent of its residential customers.
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