Volume 2, issue #12 - 02-05-1997

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Philippine Herma wins stake in PNOC

shipping & TransportApr. 16, 1997 Philippine tanker company Herma Shipping and Transport Corp has offered the highest bid for a 60 % share of the state-owned PNOC Shipping and Transport Company. Herma Shipping submitted a bid of Peso 301.23 mm ($ 11.5 mm) for the oil tanker subsidiary of the Philippine National Oil company (PNOC) which is being privatised.
The winning bid was 41 % higher than the indicative bid price set by PNOC for its subsidiary. The state oil company had earlier set Peso 355 mm as the value of the fleet. With 60% of the company being put up for sale, the lowest bid acceptable was set at Peso 213 mm. The Manila-based Herma Shipping outbid 14 other foreign and local consortia which had prequalified for the tender.
The second highest bidder was a consortium composed of Indonesian tanker company PT Berlian Laju Tanker and local partner Emerson Wood Industries which offered Peso 266.25 mm. Other foreign companies which participated in the bidding included Singapore- based Sembawang Maritime and local partner Arktis Maritime, Hong Kong-based IMC Holdings and local partner Great Southern Maritime Services Corp and Singapore-based Osprey Maritime with Doris Maritime of Geneva and local partner TSM Manning Corp.
Herma Shipping has been in the Philippines coastal business for the past 12 years. It owns and operates a fleet of 25 oil product tankers and barges transporting oil products around the Philippines' 7,100 islands. The company which is one of the largest tanker outfits in the country recently place an order for one 5,000 dwt and two 2,500 newbuildings.
At present six of the PNOC tankers have existing contracts with Petron Corp which is the biggest oil products distributor in the Philippines.