"We are processing the documents for the transfer. Probably we can finish it within the month," PTT PCL president Prasert Bunsumpun said, adding that formal agreement on the sale was done on Dec. 30 last year.
The full ownership of Subic Coastal, Bunsumpun said, is consistent with PTT’s effort to widen its presence in the Philippines. Bunsumpun said they will drop the Subic Coastal name and change the corporate name to PTT Philippines.
"At the moment, PTT will wholly own the facility. It would carry the PTT brand, all will be under PTT Philippines, after we acquire 50 percent of El Paso," he said.
In December last year, the Thai oil and gas conglomerate’s board announced the plan to acquire 50 percent of the Subic Bay Group from US energy firm El Paso Corp.
Subic Bay Group comprises Subic Bay Energy Ltd., Subic Bay Fuel Ltd., and Subic Bay Distribution Inc. The Group is located in the Philippines and operates a petroleum business in the country and the region. It has a total registered capital of $7 million.
Based on its stock exchange filing, PTT said since El Paso has decided to withdraw from its overseas oil business, including the Philippines, it proposed to PTT that Subic Bay Group be liquidated, or it would sell its stake in the Group to PTT at a price equal to 50 percent of the group’s asset value at the end of 2003, or around $33 million.