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PNOC-EC allocates P5.29B for 2011 budget


PNOC-Exploration Corp., the upstream oil and coal subsidiary of state-owned Philippine National Oil Co., has allotted nearly P5.3 billion for its 2011 budget. "This includes a total capital investment of P4.55 billion, P167.8 million for capital expenditures, and P572.7 million for operating expenditures," PNOC-EC said in a statement posted on the Philippine Stock Exchange website Thursday. PNOC-EC said expenditures for the Malampaya deep water gas-to-power project, Malangas and Isabela coal-fired power plants, and various petroleum and coal exploration projects are included in the total capital investment aspect of the budget. The company has several projects lined up for both the petroleum and coal industry, according to the statement. "For petroleum, the company started its oil trading business in 2009. [It] ventured into the international trading scene by supplying and sourcing petroleum products within the Asian region, and has since become a new revenue-generating unit of the company," PNOC-EC said. From its experience in overseas oil trading, PNOC-EC said it now looks forward to put up infrastructure that will support the firm to import and supply refined petroleum, diesel, and gasoline products to the domestic market. PNOC-EC said it is presently "studying options" for setting up tank farms in northern or southern Luzon that will serve as storage for its own oil inventory. Initially, the company plans to lease tanks for imported products and sell these to identified local downstream oil players, it added. In the coal industry, PNOC-EC said it also intends to begin operations in its Lumbog coal project in Zamboanga Sibugay, with prduction set for the second quarter of 2012. The firm will spend around P818 million for the development of the project, it said. — JE, GMA News

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