MANILA, Philippines - Pilipinas Shell Petroleum Corp. will likely work on its initial public offering (IPO) next year, after completing the expansion of its refinery in Tabangao, Batangas.
While Shell’s long overdue debut on the Philippine Stock Exchange (PSE) will not take place this year, Melita Obillo, director of the Department of Energy-Oil Industry Management Bureau (DOE-OIMB), said its IPO is possible “after the upgrade of its refinery” which will be finished in the first quarter of next year.
“Shell is also looking at market conditions before proceeding, so that’s another consideration,” she said.
In June last year, then DOE Secretary Carlos Jericho Petilla said the oil firm has decided to expand its refinery, which could pave the way for its listing on the PSE.
The oil company is looking at expanding its 110,000-barrel per day (bpd) refinery in Tabangao, Batangas to meet Euro IV fuel standards that will take effect in 2016.
The Euro IV standard is a globally-accepted European emission benchmark for vehicles which requires fuel to have significantly low amounts of sulfur and benzene.
Shell has assured government it will push through with the IPO, DOE Acting Secretary Zenaida Monsada said.
“We were informed that Shell will do the IPO but there will be a lot of preparations before that,” she said.
“It needs to comply with the rules of the stock exchange and to protect its investors, so it has to ensure continued earnings. So far, Shell’s financial prospects are improving,” Monsada added.
The DOE has long been pushing Shell to proceed with the IPO as required by the Oil Deregulation Act of 1998.