By Alena Mae S. Flores

The government plans to sell 40 percent of state-owned PNOC Exploration Corp. not later than the third quarter, Finance Secretary Margarito Teves said yesterday.

?We are hoping to get 40 percent privatized hopefully within the first six months. If there?s a spillover, probably, [we will do it in the] third quarter,? Teves said.

Teves said the government was bent on privatizing PNOC Exploration to raise much-needed revenues this year.

?We are trying to push it since we need revenues. Our real target is first half or not later than third quarter. We are hoping to raise P10 billion to P11 billion from the sale,? Teves said.

Teves earlier said the sale of PNOC Exploration?s 40 percent stake hinged on market conditions.

?Of course, we have to be sensitive about the overall condition, response of private investors and so on. We?re thinking of selling 40 percent and there are no changes yet in terms of the volume,? he said.

Energy Secretary Angelo Reyes earlier said selling PNOC Exploration was a ?complicated? issue because the company is involved in oil and gas exploration.

Reyes said oil and gas exploration is important to any country to ensure security of oil supply, especially with threats of ?scarcity of imported oil.?

PNOC president Antonio Cailao agreed with Reyes, saying that government will have to study carefully the sale of PNOC EC shares.

?It [PNOC EC] is into upstream oil and gas development. This may also involve the issue of oil security. We cannot just sell this company, we need to study it very well,? Cailao said.

PNOC EC holds a 10 percent stake in the $4.5-billion Malampaya gas to power project.

Company officials said the proposed sale received numerous offers from various investors.

?Aside from San Miguel Corp. which had already announced its intention to bid for PNOC EC, there are a number of big groups that signified interest,? PNOC-EC president Rafael del Pilar said earlier.

The company?s stocks are listed at the Philippine Stock Exchange but less than 5 percent is owned by investors.