State-run Philippine National Oil Co. said it is now eyeing a negotiated deal for the sale of the Malampaya banked gas, following two failed attempts to attract bidders.
PNOC president Reuben Lista said he was authorized by the board to enter into comprehensive discussions/negotiations with prospective buyers of the banked gas at a rate below the Ilijan gas price.
“The results of such discussions/negotiations shall be reported back to the board for guidance,” Lista said.
The Malampaya gas project currently sells its natural gas output to the Ilijan power plant for $6.616 per gigajoules.
PNOC earlier sought out bids for 97.67 petajoules of banked gas or unutilized gas from the Malampaya gas project.
The PNOC board also approved the conduct of another round of publication without setting a specific deadline for the submission of offers. “This is to allow multiple offers to come in until such time that the proposal[s] with the most advantageous terms to PNOC is/are received,” Lista said.
Lista said he was hoping that the negotiated sale would generate around $700 million for PNOC.