"We will secure the approval of our board within the week," Shell external affairs general manager Roberto Kanapi said.
In an earlier interview, Shell country chairman Eliseo Santiago was quoted as saying that the company plans to undertake the IPO by mid-2003 to early 2004.
Energy Secretary Vincent S. Perez has said he wanted Shell to proceed with its public offering despite the prevailing uncertainties in the local and international oil markets.
"The initial public offering (IPO) of oil companies is not related to the crisis. In fact during Royal Dutch/Shell Group of Companies managing director Malcolm Brinded’s visit last week, President Arroyo reiterated, in a courtesy call on her, her desire to see Pilipinas Shell be listed as soon as possible," Perez said.
Perez said they are amenable to a public listing to be done on a staggered basis. "While the oil deregulation law requires oil companies to list a minimum of 10 percent of the shares of Pilipinas Shell or oil refiners, we are willing to even see a phased listing whereby less than 10 percent be listed initially followed by a minimum 10 percent later,"he said.
Based on initial talks with Shell and Caltex, Perez said Shell will offer its shares to the public first then to be followed by Caltex.
The energy chief, however, does not intend to impose a deadline on when the oil companies should undertake their public offering. Per Department Circular 2002-10-006 published last Oct. 30, the DOE Secretary will set the date for the IPO of oil firms.
Perez said the DOE just wants to see if the oil refiners are currently making significant initiatives to show that they are really willing to undertake the IPO.
"We wanted them to undertake some significant milestones to show their good faith to undertake the IPO. These measures include: getting board approval for listing, getting shareholders‚ approval and conducting shareholders’ meeting to go on a listing, applying to PSE for listing, engaging a financial advisor. So, rather than say that we are going on a public listing, we wanted them to undertake specific and concrete measures to show good faith that they are on their road to an IPO," he said.
The DOE circular issued late last year mandates the imposition of a hefty P50,000 penalty for each day of delay from the date determined by the Secretary of Energy for the holding of IPO.
Petron Corp., the country’s largest oil refiner, is the only publicly-listed oil firm in the local bourse when it sold at least 20 percent of its share through an IPO in 1994. Simultaneous with the IPO, at least 40 percent of Petron’s share was sold to Saudi Arabian Oil Co., a subsidiary of Aramco Overseas B.V., the world’s largest oil producer. The remaining 40 percent is retained by the government through the Philippine National Oil Com.
Caltex and Shell have been asking for an extension to undertake their IPOs which was supposed to be carried out by the oil refiners last February 2002, under the provision of Republic Act 8479 or the Oil Deregulation Law.
Under this law, "any person or entity engaged in oil refinery business shall make a public offering through the stock exchange of at least 10 percent of its common stock within the period of three years from the effectivity of the Act or the commencement of its refinery operations."