OIL giant Pilipinas Shell Petroleum Corp. said it is putting up more facilities to drive revenue growth, with a refinery upgrade expected to be finished next month and an import terminal in Mindanao also set for completion before the end of the year.
Shell Philippines country chairman Edgar Chua said the Batangas refinery upgrade is set to be finished in November this year.
Once the Batangas refinery is completed, Chua said 30 percent of the entire local production of Shell will already be Euro IV compliant.
In addition, the company’s import terminal in Cagayan de Oro is also expected to be completed before the end of the year.
The P6 billion Cagayan de Oro City fuel import terminal expands Shell’s existing depot in the area.
Shell earlier said the terminal is expected to support industrialization, urbanization and overall consumption growth in Mindanao and the Visayas.
As part of its expansion program, Shell will continue to build more retail stations, Chua said.
At the same time, Chua said they are still pursuing their plan to put up a liquefied natural gas (LNG) facility.
“We continue to look for opportunity, especially on LNG,” he told reporters.
Chua said Shell is also targeting to launch their long-delayed initial public offering (IPO) sometime next year.
“We’re preparing for an IPO. All systems are go, it’s just a question of timing,” he said.
He said initially, Shell may sell more than the minimum requirement of 10 percent of common stock.
The company, he added, is still studying how to allocate the funds to be generated from the IPO.
“Some of it may be used to reduce debt, some of it for additional capital expenditures, working capital,” he said.
Melita Obillo, director of the Oil Industry Management Bureau (OIMB) of the Department of Energy, earlier said the oil firm has already submitted last July a letter expressing its intention to launch an IPO.
Pilipinas Shell needs to undertake an IPO as it is mandated by the Oil Industry Deregulation Act in order to give the public more investment choices.