Petronas keeps 38.5% stake in Bataan Polyethylene

Malaysia’s Petronas will not sell its 38.5-percent stake in Bataan Polyethylene Corp. (BPC), following the decision of British Petroleum to sell its shares in the firm, government sources said yesterday.

They said Petronas is not selling its stake in BPC and is still reportedly interested in pursuing the naphtha cracker project.

"However, Petronas is not increasing its stake either in BPC following the decision of British Petroleum to sell its 38.5-percent share in BPC," the sources disclosed.

Aside from Petronas and BP, the other stockholders of BPC are Sumitomo Corp. of Japan with 6.5 percent and Filipino-owned Bataan PE Holdings with 16.5 percent.

Sources said BPC, along with the other petrochemical players, had been operating below capacity due to a global glut in petrochemical resin.

Petrochemical Corp. of Asia and the Pacific has closed, while JG Petrochemical Corp. is struggling to survive.

Earlier, petrochem players requested the government to delay the liberalization of the local industry under the ASEAN Free Trade Area-Common Effective Preferential Tariff (AFTA-CEPT).

Plans to put up a naphtha cracker plant that would fully integrate the local petrochemical industry are still in the drawing board following difficulties faced by the local petrochem players and foreign proponents.

"The reported withdrawal of BP and Petronas could be considered a possible further setback for the country’s naphtha cracker project, the sources said.