THE Philippine National Oil Co. (PNOC) said its proposed port development project in Mabini, Batangas that would have accommodated larger-capacity vessels is no longer deemed viable due to the current economic conditions.
“In a special meeting held on Oct. 20, at which a quorum was present, the board of directors of the PNOC, exercised their right… to not award the contract for the Energy Supply Base Port Development Project as they have determined that the economic conditions have significantly changed as to render the project no longer economically feasible,” the PNOC said in a notice of non-award posted on its website last week.
In its invitation to bid, the firm had allotted P1.4 billion for the project.
PNOC has said it had plans of reclaiming and building a new pier in the area “to provide support and logistics for (its unit) PNOC-EC (Exploration Corp.) and other exploration service contract holders, as well as meet the growing demand for ports that can accommodate larger energy vessels with heavier cargoes.”
PNOC-EC used to operate the energy supply base in Mabini, Batangas, which provides berthing, cargo handling, storage, and warehousing facilities to its energy and commercial clients. But in 2018, PNOC took over the supply base’s operations.
PNOC has a mandate to provide access to facilities for companies engaged in onshore and offshore exploration.
The Batangas provincial council had cleared PNOC’s project and the reclamation activity that will come along with it, issuing a resolution of no objection on Oct. 11.
The Philippine Reclamation Authority requires such a resolution for reclamation works. — Angelica Y. Yang