Study on $600-M naphtha project ready by July

The Philippine National Oil Co. (NPOC) expects to complete the detailed feasibility study (DFS) on the $600-million naphtha cracker plant by July 1 this year.

"We are doing a lot of simulations. We are going as scheduled. The DFS will be completed by June and we are ready to release the results by July 1," PNOC president Thelmo Y. Cunanan said.

After completing the DFS, Cunanan said they will start making an information memorandum that will be distributed to interested investors. This will be followed by the bidding procedures.

Cunanan, said there are a number of investment banks that have indicated keen interest to be part of the underwriting group or become financial advisors.

"We have been visited by a number of parties (investment banks). They continue to express intent to take part in the project," he said.

Earlier, Cunanan said Petronas remains one of the interested parties to take up a portion of the equity for the naphtha cracker project.

But Cunanan said Petronas is still awaiting the results of the feasibility study before it could firm up any investment in the project.

The cracker project, to be constructed in Mariveles, Bataan, will be led by PNOC subsidiary, PNOC-Petrochemical Development Corp. (PPDC).

PPDC earlier said the company is planning to allot at least $100 million (roughly P5.1 billion) to finance its 34-percent equity stake in the proposed naphtha cracker project.

The project will be done in phases. The first phase will involve $600 million worth of financing and will need another $600 million for the second phase of the project. – Donnabelle Gatdula