PNOC, Araneta group terminate talks on Bataan deal

PHILIPPINE National Oil Co. (PNOC) has terminated further talks with the Araneta group for a lease agreement over a portion of the state-led agency’s 530-hectare property that straddles the Limay and Mariveles towns in Bataan province, its president said.

“Officially rejected,” Reuben S. Lista, PNOC president and chief executive officer, told reporters on Tuesday when asked about an update on the negotiations, which he reviewed when he assumed office in November last year.

The Araneta group’s Energy Oil and Gas Holdings, Inc. (EOGHI) had a memorandum of agreement with PNOC under the previous administration that was meant to arrive at a lease agreement for 90 hectares of the Bataan property.

He said the decision was arrived at by the PNOC board, which saw no improvement in the offer made by EOGHI. He said the private company was informed of the decision through a letter dated June 13.

The lease negotiations were covered by a memorandum of agreement ( MoA) between the company led by Gregorio M. Araneta III and the PNOC board under the previous administration.

Mr. Lista said the MoA expired in June 2015, although talks went on beyond that date even after the previous PNOC board failed to approve the EOGHI application. He added talks continued under his leadership but the nine-member PNOC board had not seen any improvement in the offer.

“They were not able to convince the last board and they are going back to their previous offer — to the new board,” he said.

BELOW FAIR VALUE

He declined to cite the offer made by Mr. Araneta but said it was way below the prevailing fair rental value in the area, of which 180 hectares were developed into a petrochemical industrial park.

He said some terms put out by the Araneta group were unacceptable to the PNOC board, citing for instance its call for a “peaceful possession of the land” before agreeing to a lease agreement.

Glenda G. Martinez, PNOC senior vice-president for management services, said the Aranetas were inclined to rent beyond the 90- hectare prime lot. She said PNOC prefers to rent out 220 hectares although informal settlers currently populate parts of the property.

She said PNOC is now open for applications to locate or lease in the Bataan property “subject to applicable laws and regulations,” citing Republic Act 10516, the law that expanded the use of PNOC’s industrial estate in Lamao, Limay, Bataan to include businesses engaged in energy and energyrelated infrastructure projects. The estate used to be open only to petrochemical and related industries.

Mr. Lista said EOGHI may submit a new proposal or offer “and the same will be evaluated on the footing with the other applications.”