Petron spent P8.66B for projects in H1

Petron Corp., the country’s largest oil refiner and retailer, said it had already rolled out P8.66 billion worth of capital expenditure projects in the first half of the year.

This amount represents only 38 percent of the P22.8-billion capital expenditure budget set for this year.

The budget covers “partial funding for the refinery expansion project, service station network expansion, consumer facilities, asphalt facilities, maintenance and other efficiency projects,” Petron said in a regulatory filing.

Earlier this year, San Miguel Corp., which owns 68 percent of Petron, estimated a higher capex budget for Petron of P31.3 billion. This amount would have been allocated as follows: 49.9 percent for the implementation of Refinery Master Plan (RMP)-2, 24 percent for the cogeneration power plant project and 8.6 percent for service station network expansion, the conglomerate said earlier.

Over the past few years, Petron has been aggressively investing in projects that would allow it to improve efficiencies and market share, as well as reduce operational costs. These projects included the continued expansion of its retail network and the $1.8-billion upgrading of its 180,000-barrel-a day oil refinery.

Petron chairman and CEO Ramon S. Ang earlier said the so-called Refinery Expansion Project (RMP-2) was a strategic project not only for the oil company but also for the whole country as it would help lessen the country’s dependence on fuel imports.

Expected to be completed by 2014, the RMP-2 will further enhance the country’s supply security, increase Petron’s capability to supply the increasing demand for white products (liquefied petroleum gas, gasoline, and diesel) and petrochemicals.