Petron Corp., the country’s largest oil refiner, has started preliminary talks with its new potential strategic partner Ashmore Group, the oil firm’s top executive said yesterday.
In a disclosure to the Philippine Stock Exchange (PSE), Petron chairman and CEO Nicasio Alcantara said a team from Petron has held “informal discussions” with representatives from Ashmore.
Ashmore is the $36.5-billion global asset management company which has
offered to buy Saudi Aramco’s 40 percent stake in Petron for $550 million.
Alcantara said based on initial discussions with the potential buyer of almost half of the oil firm’s equity, the group shared the same long-term objective of intensifying Petron’s business by expanding operations to include activities in the petrochemicals industry.
“We are glad to note that our strategic transformation program, which is based on our diversification into petrochemicals, is one of the main reasons why Ashmore offered to buy Aramco’s shares,” he said.
The Petron official said “they (Ashmore) will definitely support our further expansion into the petrochemicals business.”
The company is currently evaluating the second phase of its refinery master plan which aims to increase conversion capacity and petrochemical feedstock production.
Alcantara reiterated that Ashmore’s interest in buying Aramco’s shares is a strong vote of confidence in the company’s operations and growth prospects, and the Philippines as an investment destination.
As this developed, he said Petron has taken the lead in providing the much-needed boost to the country’s petrochemical industry.
Alcantara said their new facility, reportedly the first of its kind in the world, will play a major role in jumpstarting the petrochem business.
“These new refinery units will hopefully jumpstart the local petrochemical industry and will result in exponential benefits for other vital downstream manufacturing sectors,” he said.