Petron re-nationalization a bad idea, says watchdog head
By Abigail L. Ho
Philippine Daily Inquirer
First Posted 07:05:00 04/30/2008
MANILA, Philippines--Re-nationalization of oil refiner and retailer Petron Corp. may be one of the worst calls the government can make, considering the importance of oil to the local economy, said Raul Concepcion, a business magnate who heads the private watchdog group Consumer and Oil Price Watch.
The government has no business running an oil refinery by itself, he said at a news briefing. “The government doesn’t have the know-how and it doesn’t have the cash,” he said. “We always need to have sure supply, no matter what. The worst possible consequence is for us to have no more refinery here, if that [re-nationalization] happens.”
The government, through Philippine National Oil Co., is studying its next move on to the sale of Aramco Overseas Co.’s 40-percent stake in Petron to the London-listed Ashmore Group.
PNOC has 60 days, from March 13, when it received notice from Aramco of Ashmore’s purchase offer, to exercise its right of first refusal.
That 60-day period will end on May 12.
Amid speculations of a possible re-nationalization, news of the government’s possible divestment of its 40-percent Petron stake has also surfaced.
In an earlier interview, Finance Secretary Margarito Teves said the possibility of divestment was on the table but no decision either way had been made. “That would come in the second semester,” he said.
In a separate interview, Energy Secretary Angelo Reyes said there was no offer from any private entity to buy the government’s stake in Petron. “There are no discussions yet about that,” he said.
As of now, he said, the government maintains its privatization thrust for Philippine National Oil Co. (PNOC), which holds the government’s 40-percent share in Petron.
PNOC has engaged the government-owned Development Bank of the Philippines and ING Bank to as its financial advisers on Ashmore’s proposal to purchase Aramco’s stake in Petron. With editing by INQUIRER.net
|
