Thursday, May 08, 2008 PNOC may not buy Aramco’s share in Petron
WHILE there was no official decision yet, Energy Secretary Angelo Reyes has hinted that the Philippine National Oil Company (PNOC) may not acquire the 40 percent stake being offered by Aramco Overseas over Petron Corporation.
This, after Reyes revealed that they have referred two investors group, namely, fund manager Morgan and Stanley and the Gokongwei group that have expressed interest in the shares being sold by Aramco Overseas to the Development Bank of the Philippines and the ING Bank, which have been chosen as their financial advisor.
According to Reyes, the PNOC board which is set to meet Thursday will decide on two matters -- the right to exercise first option and the right to identify "illegible party " -- to exercise the right to transfer should they decide not to acquire the 40 percent stake.
"The PNOC board has up to May 12 to decide on what to do," he said.
He added that during the share agreement signed between the government and Aramco Overseas it was stipulated in the contract that should the other party decide to sell their stake, the government through PNOC should be given the right of first refusal.
He said they have called the meeting together with the representatives from PNOC and the finance, trade, energy and justice departments to determine what course of action they should take.
Saudi Aramco announced last March that it entered into an agreement with the Ashmore Group through its subsidiary, Sea Refinery Holdings for the sale of its 40 percent stake in Petron at US$550 million.
In 1994, the Philippine government sold its 40 percent share with PNOC to Aramco for US$535 million and it was agreed that PNOC would be given the right to match or assign should the Saudi-based oil company decide to sell its shares.
Petron supplies nearly 40 percent of the country’s total fuel requirements. In 2007, Petron posted a net income of P6.4 billion, up by 6.3 percent over its 2006 profits. Petron is the country’s largest refiner. (MSN/Sunnex)
