Energy Dept brushes aside Malampaya sale

The Aquino administration has dismissed the idea of selling the state-run Philippine National Oil Co. (PNOC)-Exploration Corp.'s 10-percent stake in the Malampaya natural gas project, the Philippines' largest natural gas development project. "The present decision is that Malampaya is not going to be sold. We are not recommending the sale of the government's stake in Malampaya because the upside value is very good," Energy Secretary Jose Rene Almendras said over the weekend. Instead, Almendras said the Aquino administration is looking at the privatization of the PNOC-Shipping and Transport Corp. (STC). The previous administration intended to sell the government's 10-percent stake in Malampaya for P16 billion. Almendras said they are now looking at the best privatization tact for PNOC-STC. "The board already decided to explore the possibility of letting go of its shipping company. Rather than just sell[ing] the ships, the board opted, if possible, to sell the whole company," he said. Previous administrations had long wanted to privatize PNOC-STC either through the sale of its assets or the sale of the company through an initial public offering. PNOC-STC's fleet includes M/T Gen. Antonio Luna, M/T Dr. Jose Rizal, M/T PNOC Lapu-Lapu and M/T PNOC Emilio Jacinto. The company has been serving the marine-transport requirements of oil refiner Petron Corp. for around 30 years. —JE/OMG, GMANews.TV