THE Department of Energy (DOE) wants Pilipinas Shell Petroleum Corp. to explain the status of its planned Initial Public Offering (IPO) on the Philippine Stock Exchange (PSE) in compliance with the Oil Industry Deregulation Act.
With only two months to go before 2014 ends, we wanted to inquire on the status of Shell’s IPO, said Energy Secretary Carlos Jericho Petilla.
Edgar O. Chua, Pilipinas Shell country chairman, announced in June that the oil firm is gearing for its listing at the local bourse “hopefully this year” as part of its long-term plans for the Philippines.
Chua, however, said the listing at the local bourse 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,
According to reports, Shell recently started working on its $150-million expansion, which will include upgrading the refinery to produce Euro IV standard fuel products.
Currently, only Petron and Phoenix Petroleum Philippines Inc. are listed on the PSE.