PILIPINAS Shell Petroleum Corp., the local arm of Royal Dutch Shell Plc, may start working on its initial public offering (IPO) as soon as it came up with the final investment decision (FID) on its Batangas refinery, which will be settled upon within three months.
Early last year, the Department of Energy has started to put pressure on Pilipinas Shell to finally conduct its IPO. Passed in 1998, the Oil Deregulation Law requires local oil companies to have at least 10 percent of its shares listed in the Philippine Stock Exchange. The listing of Pilipinas Shell’ shares in the local bourse was supposed to happen more than a decade ago but it has long been delayed until now.
As of now, Shell is working on the upgrade of its refinery in Batangas to be able to meet new Euro four fuel standards, which is a globally accepted European emission standard for vehicles. In an interview with reporters last week, Pilipinas Shell Chairman Ed Chua said that the company may finally start working on its market debut this year or after it finalized the FID on its the refinery upgrade, a project that is being pushed for to give the company security in supply.
“It’s [the upgrade]for our supply security, energy security,” Chua said, adding that the refinery is not only supplying to Pilipinas Shell but also in other companies across other industries.