Interesting article from columnist Boo Chanco on why PNOC should be abolished on the event that the 10% Malampaya stake held by its subsidiary, PNOC-EC, is sold by the government in order to finance the government’s debt.
Chanco notes that the PNOC used to be a profitable arm of government, having made income from the importation of crude oil, from its geothermal fields, from Petron, from its coal mining activities and trading and from its drilling operations. All of which were lost due to the privatisation of those assets. All that’s left is the Malampaya Natural Gas investment.
Malampaya Natural Gas field is located off the coast of Palawan and is owned by a consortium wherein the government has a 10% share of the project. That field supplies the very important fuel to natural gas powered power plants in the city. Aside from the profit lost, there is also the all important oversight that allows government to check that what the Philippines gets is a fair share and a fair price of the natural gas from the drilling operation.
Category: Natural Gas
