The Department of Energy (DOE) is seeking an update on Pilipinas Shell Petroleum Corp.’s initial public offering, which is required under the Philippines’ oil market liberalization law.
Short of compelling the oil giant to set a date for its IPO, Energy Secretary Carlos Jericho Petilla said the DOE would ask Shell to report on its plans.
Petilla said he had earlier met with Shell country chair Edgar O. Chua and was assured that the oil firm had long-term plans for the Philippines. That was around May, three months after Petilla told the media he would “insist” that Shell firm up its investment plans for the Philippines, including its IPO.
Among such plans, according to DOE, is the $150-million expansion of Shell’s 110,000-barrel-a-day refinery in Tabangao, Batangas province.
Shell is upgrading equipment to produce Euro IV standard fuel products and provide capacity for exports besides serving local demand.
DOE said another indication of Shell’s commitment to the Philippines is its liquefied natural gas (LNG) import terminal project (adjacent to the refinery), for which the company has undertaken a technical feasibility study as well as engineering and design work.
Earlier, Shell vice president Roberto S. Kanapi told the Inquirer that “subject to achieving a positive FID (final investment decision), the refinery upgrade will be completed in time to meet Euro IV implementation deadline.”
Pump stations must be selling Euro IV-standard fuel by January 2016, which means the $150-million refinery upgrade should be completed in 2015.