Opening Remarks by Admiral Reuben S. Lista, President and CEO of the Philippine National Oil Company (PNOC) given during the Board Strategic Planning Session (SPS) on 24 February 2021

A pleasant morning to us all!

We are convened today for the 2021-2025 Strategic Planning Session, to discuss what the Philippine National Oil Company (PNOC) has accomplished in the previous year, as contrasted with the corresponding targets set in the Strategic Plan for the year of 2020. Our task is to identify the factors which resulted in the accomplishment or non-accomplishment of our goals in 2020, and to determine the areas for improvement. Our objective for today’s planning session is to come up with the most efficient and effective solutions to address the issues which arose in 2020, and establish which goals should be prioritized for implementation in 2021 and the next coming years, up to 2025.

The year of 2020 has definitely challenged us in ways that no other year has done before. The emergence of the COVID 19 pandemic, in addition to several severe weather disturbances, has been such a great hindrance to PNOC’s operations, especially in the Energy Supply Base (ESB) in Batangas and in the PNOC Industrial Park (PIP) in Bataan. The development and execution of projects by our Energy Investments arm, including the Strategic Petroleum Reserve (SPR) project and the Liquified Natural Gas (LNG) project, were also greatly impeded by the restrictions brought about by the pandemic, and by other legal, legislative and political matters which arose in the previous year. Not only that, but PNOC also faced challenges in terms of the funding for its projects, matters which will be discussed in further detail during the respective presentations of our senior vice presidents during today’s session.

Despite all these challenges, PNOC remains steadfast in the fulfillment of its vision that by the year 2030, it will have provided vital energy resource and development, and energy infrastructure conducive to a clean environment and balanced and sustainable economic growth. PNOC remains committed to its mission to develop and implement programs which will increase the country’s self-sufficiency in oil, gas, and other forms of energy.

I am delighted and proud to report that despite the issues that came up in 2020, PNOC was able to generate a comprehensive income in the amount of PHP 534 million, computed as of the end of December 2020. This is notwithstanding the remittance of PHP 5 Billion to the national government to bolster the COVID 19 fund, and the corresponding loss of our interest income on our money placements on the PHP 5 Billion. The company’s ability to stay afloat during these very trying times is a testament to the competence of our very capable management team, and they deserve our commendation.

I would also like to commend the management of ESB for having generated a total annual gross revenue of PHP 111.42 Million, against the projected revenue of only PHP 90.94 Million in 2020 – which means that ESB exceeded its target projected revenue. With respect to our real estate holdings, as of the end of 2020, we have disposed of twelve (12) Costa Verde properties, and entered into a long-term lease contract with Wealth Horizon Development Corporation over our Sta. Mesa property. Furthermore, PNOC is also in the process of entertaining proponents for possible partnerships in our LNG project ventures, and is presently in talks with the Power Sector Assets and Liabilities Management Corporation (PSALM) for the sale of our remaining Banked Gas.

I would like to announce that in December 2020, the PNOC Head Office passed its ISO re-certification, while our ESB and Industrial Park are now fully ISO Certified. The PNOC personnel involved in the certification process worked diligently for this accomplishment throughout the periods of lockdown, and I would like to extend my congratulations to them and to all of us.

All of our achievements in 2020 could not have been possible without the collective and tireless efforts of all members of the PNOC family, from Chairman Alfonso G. Cusi and the members of the Board of Directors, to the heads of management, and down to the rank-and-file personnel and other support staff. In this regard, I would like to request for a minute of silence to commemorate the memory and for the repose of the soul of our dearest Glenda G. Martinez, who was instrumental in the development and past successes of PNOC, and for all others who joined our Creator in the year of 2020, who we love and hold close in our hearts, like my mother, Maria La Paz Siazon Simon-Lista.

Thank you very much, and I hope that our Strategic Planning Session today will be fruitful and happy.