The Department of Energy (DOE) is calling on Pilipinas Shell Petroleum Corp. to undertake its initial public offering (IPO) immediately, as the offering has long been overdue since the oil firm is mandated to be a public company since 2002.
Energy Secretary Carlos Jericho Petilla said that the department has sent a letter to Pilipinas Shell to remind the oil company to do its public offering in compliance with the Downstream Oil Industry Deregulation Act of 1998.
“It’s just a reminder for them [Pilipinas Shell] that it has been a long time already. That’s why we wrote them a letter,” he said.
“We have not received a reply from Shell yet,” Petilla added.
The DOE is currently seeking Pilipinas Shell’s plans regarding the firm’s much-delayed IPO because, according to Petilla, the department “cannot take any action at this point until we receive a reply from them.”
“We’ll have to see first what they have to say. We have to see down and see what their reasons are rather than preempt them,” Petilla said.
In its letter to Pilipinas Shell dated May 14, the DOE cited that “while the opinion of the
Department of Justice is that three-year period under the Oil Deregulation Law is not mandatory, but prescriptive and will not prohibit an IPO to be conducted after lapse of the said period, nearly 15-year period since the passage of the law is long overdue for the company to implement the public offering of 10 percent of its common stocks.”
“Given also that the equity/financial market environment in the country is currently healthy, which attracts potential investors, you are hereby requested to submit an update of your IPO plans,” Zenaida Monsada, DOE Oil Industry Management Bureau director, said in her letter to Pilipinas Shell.
“We would expect your response on or before May 31, 2013,” she added.