MANILA: Petron Corp., the Philippines largest oil refiner, said Friday that Saudi Aramco aimed to sell its 40 percent stake in the firm to British investor Ashmore Group for $550 million.
State-run Saudi Aramco, the biggest oil refiner in Saudi Arabia, told the Philippine government of its plan to sell all of its shares in Petron to Ashmore-owned SEA Refinery Holdings, a Petron statement said. State-owned Philippine National Oil Co. (PNOC), which owns 40 percent of Petron, said it will evaluate the terms and conditions associated with this offer, and decide whether to exercise its Right of First Offer to purchase the shares.
PNOC president Antonio Cailao said his company will carefully evaluate this filing with the diligence and rigor necessary and appropriate to determine the best course of action.
Philippine President Gloria Arroyo said the possible investment by Ashmore in Petron was a vote of confidence in Petron and the positive environment that has been created for foreign investment in our country.
She said that she understood Saudi Aramco s decision, and was pleased that the company will maintain its ties to the Philippines through the commitment … to maintain strong commercial ties with Petron after the sale. Petron president Nicasio Alcantara said Petron s position of leadership in oil refining would not change regardless of the company s ownership structure. He expects Petron s relationship with Aramco to continue under its commitment to maintain crude oil supply.
I am confident our momentum will continue, he said, citing Petron s net profit rising to 6.01 billion pesos ($145 million) in 2006 from 2.92 billion pesos in 2002.
Petron sold 40 percent of its shares to Saudi Aramco in 1994 with 20 percent being sold off to private investors. – AFP
