PNOC doubles 2011 credit facilities to P20B

Government-owned Philippine National Oil Co. (PNOC) has doubled the standby credit facilities of its oil and gas arm, PNOC Exploration Corp. (PNOC-EC), to P20 billion from P10 billion. PNOC-EC chairman and CEO Gemeliano Lopez told reporters on Friday that the company has no intention of tapping yet the facilities offered by more than five banks to finance PNOC's line up of activities this year. Banks that offered PNOC credit facilities include BNP Paribas (P5.208 billion), Philippine National Bank (P2 billion), Land Bank of the Philippines (P1.85 billion), Standard Chartered Bank (P1.823 billion), and HSBC (P1.616 billion). Engaged in petroleum and coal exploration, as well as petroleum trading, PNOC Exploration has allocated P5.25 billion for its projects this year. Lopez said that around P900 million will be spent for the development of an existing PNOC coal mine in Zamboanga Sibugay to double the annual production to 500,000 metric tons of steaming coal. “This move fulfills the corporate mandate of securing indigenous energy source for the country," he said. PNOC Exploration, however, may have to raise over P2 billion to finance its 50 million diesel importation scheduled to arrive end of May. Joseph Omar Castillo, PNOC Exploration vice president said the company will likely finance the importation through “trade financing by its creditor banks." Government has directed PNOC Exploration to secure a strategic reserve for diesel and the company is now looking at storage areas in Subic and Quezon. Lopez said PNOC Exploration's need for additional funding would depend on how much the company can raise from its follow on shares offering this year on the Philippine Stock Exchange. – MRT/VS, GMA News