Pilipinas Shell Petroleum Corp. is still uncertain whether it will push through with its much-delayed initial public offering, even though the oil firm is moving forward with its planned projects that will require an additional $1.15 billion in investments.
According to Shell country chairman Edgar O. Chua, there are still a number of factors that Shell will need to consider in deciding whether or not to proceed with the IPO.
“We have always said … we will follow the law. The IPO, if we decide to stay here [in the Philippines] will be a question of timing, because then we will be required by law. Timing would be dependent on market, and also dependent on the resolution of some of our tax cases that are pending,” Chua explained.
Shell has always said that the company’s plans to list on the local bourse would hinge on its decision whether it would pull the plug on its refinery operations in Tabangao, Batangas.
Only last month, during the two-day visit of President Aquino to the United Kingdom, Royal Dutch Shell Plc announced its plans to construct a $1-billion regasification terminal for liquefied natural gas (LNG) and to pursue a $150-million upgrade of its 110,000-barrel-a-day refinery in Batangas.
Chua noted that it is critical for the company to resolve its “significant” tax cases before it even considers listing in order to protect their investors.
The proposed IPO has long been overdue as the oil company is mandated to conduct the offering last 2002.