Philippine Govt Eyes Sale of PNOC Tankers Anew

According to reports, the Philippine government has revived plans to dispose its interest in the shipping and transport arm of Philippine National Oil Co. (PNOC) as part of aggressive privatization efforts. The government is inviting prospective financial advisors to submit their offers for the sale of PNOC Shipping and Transport Corp. (PSTC). Interested bidders have until Dec. 12 to submit their offers. The financial advisor will be tasked to advise, guide, and assist in the design, planning, preparation, and implementation of the program for the privatization of the wholly-owned subsidiary of PNOC. Bidders should have Philippine and Asian experience as financial advisors to governments on privatization and knowledge in the shipping and maritime sector. Since 1979, PSTC provides reliable petroleum marine transport service in the country. It is engaged in shipping, tankering, lighterage, barging, towing, transport of goods, chattels, petroleum, and other products, marine and maritime industry. In 1994, the government included PSTC among the PNOC subsidiaries considered for privatization in support for the government’s program to hand over all business operations to the private sector. However, it failed to attract interested bidders. Three years later, PNOC tried to enter into a joint venture partnership for PSTC as part of its privatization efforts but failed to enter into an agreement with prospective partners. PSTC operates M/T Gomburza, M/T Graciano Lopez Jaena, M/T Antonio Luna, M/T Miguel Malvar, and M/T Jose Rizal. The Philippine Petroleum Sea Transport Association (Philpesta) has asked the inter-agency Privatization Council headed by Finance Undersecretary Gabriel Singson Jr. to hasten the privatization PSTC.