Outgoing Petron president Motassim Al-Ma’ashouq said the move to revisit their business opportunities in the said project is part of the refinery efficiency program that they have implemented in the Bataan Refinery Plant.
"We are looking seriously at the next phase of our refinery development, which basically involves upgrading of facilities. We have been conducting internal review in the light of new market data," Al-Ma’ashouq said.
The petrocoke project will involve the modification of low-priced black residue products to high-value light products by applying the so-called hydrocracking method and using delayed coking process.
Of the estimated $1.2 billion investments in the project, the oil firm is expected to spend $300 million for power generation. Petrocoke or petroleum coke is a cheap source of fuel for a commercial power plant.
But the Petron executive admitted that revisiting such plan would take time. "We have to have a thorough analysis first but I think the board would have brighter directions early next year," he said.
Since the passage of the Clean Air Act (CAA), Petron had been very busy in improving its oil refinery to comply with the laws.
So far, it is the only oil refinery in the country to put up a P5-billion hydrotreater and isomerization facility that will enable it to process CAA-compliant fuels. The construction of the two refinery facilities is expected to be completed by the end of 2004.
"By then, Petron will become the first and only refiner in the country able to produce clean air fuels. As such it will make Petron strategically positioned to capitalize on more market opportunities here and abroad," he said.
Market leader Petron is the country’s largest oil refiner. In the first half of 2003, it reported a net income of P1.28 billion, slightly higher than the net profit of P1.23 billion in the same period last year.
The first six months earnings can be attributed to the 6.8-percent increase in total sales volume to 25.2 million barrels from last year’s 23.6 million barrels. The sales volume was boosted by a 48-percent growth in exports from 2.9 million barrels in 2002 to 4.3 million barrels in 2003. This translates to revenues of P55.3 billion versus P42 billion last year.
Petron is 40-percent-owned by the government-controlled Philippine National Oil Co. and another 40 percent by Saudi Aramco Overseas Co. The remaining 20 percent is owned by the public being listed in the country’s stock market since 1994.