THE Department of Energy (DOE) on Monday confirmed the plan of oil giant Pilipinas Shell Petroleum Corp. to list on the Philippine Stock Exchange (PSE).
Pilipinas Shell needs to undertake an initial public offering (IPO) as mandated by the Oil Industry Deregulation Act in order to give the public more investment choices.
Melita Obillo, director of the Oil Industry Management Bureau (OIMB) of the DOE, said the oil firm already submitted the letter of intent last July.
“They submitted the letter last July and they are giving us updates every quarter,” Obillo told reporters at the sideline of the LPG Forum in Taguig City.
The DOE, through former Energy Secretary Carlos Jericho L. Petilla, last year gave Shell time to finish viability studies, after which it would conduct the required offering of shares.
Edgar O. Chua, Pilipinas Shell country chairman, announced in June last year that the oil firm is gearing for its listing at the local bourse as part of its long-term plans for the Philippines.
Chua, however, said the listing would depend on market conditions.
In 2013, the DOE asked Pilipinas Shell to explain its failure in the last 15 years to comply with the Oil Deregulation Act, which requires refiners to undertake an IPO.
But Shell said it needed more time to come up with a final investment decision and to determine how much capital it would need to raise for the expansion of its 110,000-barrel per day refinery in Tabango, Batangas.
Shell has started working on its $150-million expansion, which will include upgrading the refinery to produce Euro IV standard fuel products.
Obillo expressed belief that Shell would push through with its IPO once it finishes the refinery upgrade.
Currently, only Petron and Phoenix Petroleum Philippines Inc. are listed on the PSE.