News

PetroEnergy unit promises aid

March 6, 2012

PetroEnergy Resources Corp.’s unit has agreed to help manage the watershed in the service contract area of the Maibarara geothermal power plant, the firm disclosed yesterday.

PetroEnergy said the project’s operator Maibarara Geothermal, Inc., which it holds a stake in, signed the agreement on March 1.

“Under the memorandum of understanding, Maibarara Geothermal will extend financial and logistical assistance for University of the Philippines — Los Banos (UP LB) watershed research and reforestation activities while UPLB will assist Maibarara Geothermal in watershed rehabilitation, management, and information campaigns,” the company said in its disclosure.

The 20-megawatt geothermal steam field and power plant project is located in a service contract area that covers portions of the Mt. Makiling forest reserve.

The P3.22-billion Maibarara geothermal power project thus straddles Batangas and Laguna.

It will source steam from an area located west of Mt. Makiling, which is currently being developed.

Partners in the Maibarara project are PetroGreen Energy Corp., a subsidiary of PetroEnergy, which owns 65% of the company, Trans-Asia Oil and Energy Development Corp. which has a 25% stake and the Philippine National Oil Co.-Renewables Corp. which owns 10% of the company.

The service contract for the Maibarara project was awarded to PetroEnergy in February 2010.

For the nine month period ending September 2011, PetroEnergy’s net income rose 9.49% to $1.96 million from $1.79 million in the same period in 2010.

Shares of PetroEnergy closed at P6.58, up 2.49% from P6.42 apiece. — Emilia Narni J. David