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By Euan Paulo C. Añonuevo, Reporter
Puerto Princesa, Palawan: State-owned Philippine
National Oil Company has tapped the Development Bank of the
Philippines as its financial advisor in determining whether to
exercise its preemptive rights over Saudi Aramco’s shares in
Petron Corp.
The state oil company’s board “has engaged
the services of DBM as financial advisor” to help draw its next
move on Saudi Aramco’s 40-percent stake in Petron, Department of
Energy Secretary Angelo Reyes said on the sidelines of the First
Luzon Jatropha Forum organized by PNOC’s alternative fuels arm,
PNOC-Alternative Fuels Corp.
The government, which controls a 40-percent
stake in Petron through PNOC, has less than two months to decide
whether it will exercise its option to match an offer made by
UK-listed Ashmore Group for the Saudi oil firm’s entire stake in
Petron for $550 million or assign this to another buyer altogether.
Reyes said that the PNOC board has also agreed
to tap a foreign financial analyst or institution to help determine
its course of action with regard to the proposed sale.
The financial advisors have until May 12, the
end of the 60-day deadline, this year to come up with their
recommendations.
Saudi Aramco’s pending exit from Petron has
renewed calls for the government to re-nationalize Petron in light
of the soaring price of crude in the world market.
However, an industry official familiar with the
issue warned that renationalization would not solve the problem of
high local oil prices as Petron would need to pass on its crude and
other related supply costs to the consumers; otherwise, it will
eventually deplete its working capital.
“If it becomes illiquid, it would lose access
to the bank financing that it needs for crude procurement.
Ultimately, it would be unable to supply its market with refined
products,” the official said.
Petron, the country’s largest oil refiner, is
currently diversifying into petrochemicals aimed at sustaining its
market share and growth momentum.
The company earlier reported that its net income
for 2007 rose by 6.3 percent to P6.4 billion in 2007 after its
domestic sales from its traditional business line registered a
slight increase.
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