Malampaya consortium to drill 2 new wells

By Alena Mae S. Flores

THE Malampaya consortium led by Prime Infrastructure Capital Inc. of businessman Enrique Razon Jr. is on schedule in its work program which includes the drilling of two new wells.

“The good news that was shared with the President yesterday, by the Malampaya consortium is that we are on track to having the first drilling for the nearby fields by the end of 2024, and we are looking forward to new or additional supply from the same service contract by 2026,” said Energy Secretary Raphael Lotilla during the the Pandesal Forum at Kamuning Bakery in Quezon City.

Lotilla said this strong investor con- fidence reflects the government’s commitment to achieving and maintaining energy security and independence for the country.

“This good news is important in terms of encouraging more investments in exploration in the oil and gas sector,” he said.

President Ferdinand Marcos Jr. renewed and extended the Malampaya Service Contract 38 from Feb. 22, 2024 until 2039.

“Ever since [President Marcos] assumed office, he has committed the energy sector towards stabilizing the investment environment...We were able to extend or renew the service contract,” Lotilla said.

The 15-year renewal of SC 38 allowed Prime Infra subsidiary Prime Energy Resources Development B.V. to carry out drilling beyond the existing production area of the depleting gas field.

“The conduct of exploratory drilling further away from the Malampaya production area within the service Contract is a requirement for the SC 38 consortium to retain the exploration areas,” said Lotilla.

The DOE required the SC 38 consortium to submit a minimum work program involving geological and geophysical studies and the drilling of at least two deep water wells during the sub-phase 1 from 2024 to 2029.

The consortium is led by Prime Energy, UC38 LLC and PNOC-Exploration Corp.

Prime Energy is the gas operator and has a 45-percent stake in the project. UC38 also has a 45-percent stake, while PNOC-EC owns the remaining 10 percent.

The DOE said the consortium’s work program is “geared towards unlocking the potential both in the existing gas field and nearby prospect areas to provide incremental production.”

The Malampaya field’s best estimate for the near field is an additional 210 billion cubic feet of gas.

AUTO SERVICES.

by 2028

DITO expects to post net income

DITO CME Holdings Corp. said Wednesday it expects subsidiary DITO Telecommunity Corp. to post a profit by 2028 as it continues to expand coverage nationwide.

DITO CME president Eric Alberto, during the company’s annual stockholders’ meeting, expressed confidence on passing the fourth annual technical audit by the National Telecommunications Commission this month.

“This upcoming audit shall require the telco to achieve a minimum network population coverage of 80 percent and continue to deliver a minimum broadband speed of 55 Mbps over 4G,” Alberto said.

DITO passed its third annual technical audit with a national population coverage of 72.39 percent, while the minimum average broadband speed delivered are 71.77 percent Mbps and 801.19 Mbps for all 4G and 5G sites, respectively.

DITO committed to delivering national population coverage of 70.01 percent and MABS of 55 Mbps on its third year. Darwin

G. Amojelar

Globe eyes AI to enhance customer experience

GLOBE Telecom Inc. said Wednesday it is looking at artificial intelligence to significantly improve customer experience by automating routine tasks and bring down costs.

“Given the fact that we’re driving automation towards cost and operational efficiency, I think this is going to be a big contributor to our exercise,” said Globe Group president and chief executive Ernest Cu. AI is the ability of a computer or a computercontrolled robot to do tasks that require human intelligence and discernment. While AI may not be capable of executing the broad spectrum of tasks people can do, it can still rival human performance in some aspects.

Globe said it is exploring the potential of utilizing AI to enhance customer service.

The company said its main focus is on operations, where AI has shown promising use cases. This is especially evident in outbound calling, customer care,and collection.

“I was truly amazed and impressed at how human the conversation was and how effective it will be given the fact that we are driving towards automation, towards cost-cutting and efficiency,” Cu said.

Darwin G. Amojelar

UnionDigital Bank gets P900-m capital infusion

UNIONDIGITAL Bank said Wednesday it secured a capital infusion approval of up to P900 million from parent Union Bank of the Philippines.

It said the latest infusion would help drive the digital bank’s expansion, particularly in digital loans which would soon be launched in the UD app.

The capital boost will enable UD to expand its digital loan offerings via its app and APIs, providing customers with faster access to credit and a seamless loan application process. The capital infusion is subject to the Bangko Sentral ng Pilipinas regulatory approval.

“This approved funding indicates UnionBank’s confidence in our strategic growth plan and strong financial performance. We will use this to fuel our growth trajectory and allow us to better serve the financial needs of our customers,” said UnionDigital Bank president and chief executive Henry Aguda.

“Nearly 70 percent of our customer base comprise of individuals with limited means at the base of the income pyramid―these are the people we want to help and include in the financial system,” he said. UD recorded a net profit in the first quarter of 2023, driven by its ecosystem-led business model.

Government Service Insurance System president and general manager Wick Veloso (right) and Autohub Group president Willy Tee Ten finalize an agreement for Autohub to provide an open credit line and exclusive discounts for automotive services to GSIS-insured vehicles at the GSIS head office in Pasay City. Under the partnership, GSIS-insured vehicles will receive a 10-percent discount on parts and a 15-percent discount on labor and materials at Autohub service centers.

The Autohub Group, accredited by the Department of Trade and Industry, operates as a consortium of service centers and 31 automotive dealerships nationwide with 2,000 personnel employed in 20 companies.

36% of Filipinos report ‘difficulties’ amid high prices

MORE than a third of Filipinos reported difficulties in “meeting their financial needs based on their monthly earnings alone” amid high consumer prices, according to a market research company.

Synergy Market Research + Strategic Consultancy president and chief executive Germaine Reyes said while inflation rate decelerated from a peak of 8.7 percent in January 2023, it remained elevated compared to the previous year’s.

The Philippine Statistics Authority said inflation in June settled at 5.4 percent.

“Despite the easing of pandemic restrictions and the reopening of businesses, inflation continues to hinder consumer spending,” she said.

Reyes said to cope with high prices, Filipinos changed their spending habits and cut back on several expenditures.

“In fact, seven out of 10 Filipinos are expected to make cutbacks in household spending over the next 12 months if the contributory factors such as inflation will not improve,” she said during

By Jenniffer B.

CONSTRUCTION

Customs collected P74.86b in duties to top June target

By Julito G. Rada

THE Bureau of Customs said Wednesday it collected P74.861 billion in duties and taxes in June, exceeding by P140 million its assigned target of 74.721 billion for the month.

Its June collection, based on the report from the Bureau of Treasury, brought the total in the first half to P434.169 billion, up by P13.505 billion or 3.21 percent from the P420.66billion assigned revenue target.

The figure also reflected a P37.434billion growth compared to the previous year.

a briefing at Rockwell Club in Makati City.

Reyes said it is important for companies to keep prices steady to help Filipino consumers and entice them to spend more. “If we want to induce consumer spending, let us not raise our prices. About 36 percent are finding it difficult to meet their financial needs, and 51 percent are barely meeting their needs.

So that’s a total of 87 percent,” she said, based on the results of the study by Synergy and YouGov. Synergy and YouGov surveyed 3,479 adult Filipinos across the Philippines on March 29 to April 5, 2023.

Reyes said among the products and services that saw the biggest price increase are petroleum, eating out, healthcare and food supplement, sanitary and toiletries and mobile and Internet services.

“As inflation continues to ease up, it is hoped that consumer spending will be induced further. Right now, it seems

Austria and engineering firm Megawide Construction Corp. is venturing into residential development with the acquisition of PH1 World Developers Inc. for P5.2 billion.

Megawide said Wednesday its board of directors approved the acquisition of 100-percent stake in PH1, the property arm of parent firm Citicore Holdings

Investments Inc.

Megawide said it finalized acquisition price after a careful deliberation by the company and valuation study of PH1 in accordance with the 2022 International Valuation Standards.

“Based on the fairness opinion report issued by FTI Consulting Philippines Inc. on the transaction, the purchase price is fair from a financial point of view,” Megawide said in a disclosure to that people are putting on a wait-andsee attitude. This presents an opportunity for brands to extend a lifeline to customers by being considerate and not introduce price hikes, extend support to customers by offering products/services that align with their budget, or offer innovative solutions that will provide better value for consumers to spend on,” she said.

She said Filipino consumers were reducing spending on dining out, beauty products, cosmetics and gadgets and luxury items.

Reyes said the pandemic may have shifted Filipino consumers’ focus towards health and wellness.

“Overall, only a few product categories will see a significant increase in spending for the rest of the year, namely, healthcare products/food supplements and sanitary care/toiletries,” she said.

It said it achieved the revenue growth despite the challenges in importation volume, which fell 2.8 percent this year on high-value commodities.

The BOC said while the volume of oil increased by 9.9 percent this year from 2022, the revenue from said commodity declined because of the decreasing value of oil in the world market from $1.1 per liter in June 2022 to just $ 0.63 per liter this month.

BOC Commissioner Bienvenido Rubio said the agency’s unrelenting drive against smuggling of all forms significantly contributed to its collection performance.

The anti-smuggling efforts resulted in the seizure of shipments with aggregate estimated value of P23.8 billion this year.

It said P15.54 billion came from seizures of counterfeit goods, P2.90 billion from confiscation of agricultural products and P1.85 billion from cigarettes/tobacco, among others.

Roderick T. dela Cruz

Spending on financial or investment products are also expected to slightly increase this year as a result of the pandemic, she said.

the stock exchange.

Megawide said it would present the acquisition for shareholders’ approval during the annual stockholders meeting on July 12, 2023.

PH1 is building two high-rise projects on Ortigas Ave. in Taytay, Rizal and Quezon City and two soon-to-rise house-and-lot developments in San Jose de Monte City in Bulacan and Trece Martires in Cavite.

The Philippine Stock Exchange suspended the trading of Megawide following the disclosure.

“After a careful review of the disclosure submitted by the company, the exchange deems that the foregoing transaction is covered by the Rule on Disclosure for Substantial Acquisitions and Reverse Takeovers under Section 5, Article VII of the Consolidated Listing and Disclosure Rules of the Exchange,” the PSE said.