PNOC-Energy to borrow $ 600 mm for energy development projects

Philippine National Oil's Energy Development Corp (PNOC) plans to borrow around $ 600 mm in 2002 to help develop its energy projects, including natural gas drilling, a company official said. "We plan to tap various multilateral creditors for soft loans, as they carry lower interest rates and longer maturity periods," he said. "We have also held talks with European and Lebanese groups."
The company aims to secure a $ 56 mm loan from Japan Bank for International Cooperation by first quarter this year, he said. "More borrowings may be needed if we decide to participate in the Malampaya gas development, which would involve putting up a gas pipeline and power plant."

Meanwhile, PNOC-Energy said it planned to increase the budget for its gas drilling program by more than 150 % in 2002. "We plan to allocate $ 32.8 mm for this year's drilling program, a 150 % increase from last year's total drilling expenditures of $ 13.1 mm," he added.
The company will begin natural gas drilling programs in northern Cebu and South Cotabato, which holds potential gas reserves of 400 bn cf and 600 bn cf, respectively. It will also conclude gas drilling at Tarlac, Victoria, north of Manila.