Friday, July 13, 2007 Private sector holds majority claim over state oil firm
THE government's control over state-run Philippine National Oil Compang-Energy Development Corporation (PNOC-EDC) have gone down to 47 percent from 60 percent when it first made its initial public offering (IPO) early this year.
Energy Secretary Raphael P.M. Lotilla said the privatization of the geothermal arm of PNOC is part of the government's efforts to encourage private participation in the energy sector.
Lotilla said PNOC was able to raise P17.1 billion from the sale of the government's shares.
Lotilla said the recently completed international road show manifested the continued interest among foreign buyers, including major institutional investors, in the company.
"Their enthusiastic response is unquestionable proof of their high regard and confidence in the country's potential under the President's leadership as well as in the PNOC-EDC led by Paul Aquino," Lotilla added.
"We know that the Bicol and Visayas regions are blessed with geothermal resources. We expect PNOC-EDC, now that it is privatized, to have greater flexibility in fast-tracking its geothermal projects highlighted by the President in her 2006 State of the Nation Address to meet the increasing demand in these regions," he said.
PNOC-EDC has lined up a program consisting of the expansion of its existing steam fields and the development of new fields in the next three to eight years, namely, the 20-megawatt (MW) Nasulo (Negros Oriental) to be commissioner in 2010, 50-MW Mindanao 3 (North Cotabato, 40-MW Dauin (Negros Oriental), 40-MW Tanawon in Sorsogon to be completed in 2012, 40-MW in Rangas (Sorsogon), 40-MW Kayabon (Albay) and the 100 to 150-MW Cabalian in Southern Leyte with the commissioning in 2015.
With the upcoming geothermal projects of PNOC-EDC, Lotilla said the required capacity in Luzon is expected to steadily increase by an average of 4.2 percent for a total of 1,989 MW up to the year 2014 while in the Visayas, the required capacity is projected to increase at an annual rate of 6.1 percent and will require 869 MW more between 2007 to 2014.
The Mindanao grid will have a shortfall of 826 MW by 2014 due to an annual demand rate of 6.3 percent. (AH/Sunnex)
