|
By Chino S. Leyco Reporter
THE government may waive its
right to buy Saudi Aramco’s entire stake in Petron Corp., official
sources said Monday. Aramco Overseas Co. earlier sold its 40-percent
shareholdings in the Philippines’ largest oil refiner to the
London-listed Ashmore group, but the government, which holds another
40 percent in Petron, can exercise its right of first refusal.
A source said the government
through Philippine National Oil Co. (PNOC) may give up the Aramco
stake, citing the estimated $550 million needed to exercise its
right.
The government is hard-pressed
meeting a balanced budget goal this year amid the bearish outlook
for tax revenues and the Philippine plan to raise spending to
cushion the adverse impact of a slowdown in its biggest export
market, the US.
Separately, Finance
Undersecretary Gil Beltran said the acquisition would require
budgetary appropriation, adding the P1.23 trillion national budget
for this year has no allocation for a buyback of Petron shares.
“It would be difficult for a
corporation like Petron to compete in the market if they are
subject to government rules,” he also said.
Beltran said the government
however is still studying the matter. “We will come up with the
result soon,” he added.
The other finance department
source said that should PNOC opt to waive its right and allow the
sale of Aramco’s stake to Ashmore, then the government is
confident of the London-based firm’s financial capacity to
bankroll Petron’s expansion plans.
With 60 percent of Petron in
private hands, the government expects the company to remain
competitive, the source said.
The source also said local
business groups have expressed interest in the Petron shares. No
further details were given about these third-party groups.
PNOC had said it would evaluate
the best course of action in light of Aramco’s impending exit from
Petron.
The world’s largest producer of
crude, Saudi Aramco supplies the requirement of Petron, which
accounts for about 40 percent of Philippine fuel needs.
President Arroyo said the
government “appreciates that Aramco Overseas’ business focus has
changed since it made its investment in Petron 14 years ago.”
“Should Ashmore receive
PNOC’s approval, it will mean that a company that knows the
Philippines well through its investment in our international
financing and in an important utility, Maynilad Water [Services
Inc.], will be expanding its operations in our country,” she said.
|
