MANILA, Philippines - Pilipinas Shell Petroleum Corp. has finally decided to expand its refinery, which could pave the way for its listing at the local bourse.
Energy Secretary Carlos Jericho Petilla made the announcement after meeting with Shell’s top officials recently.
“They just wanted to say that they are expanding in the Philippines,†he said. “Shell is adamant there is a future in this country.â€
However, Shell has yet to make an official announcement on the planned expansion.
It would come after months of making a final investment decision on the refinery.
It is not clear yet whether Shell would finally push through with its initial public offering as required by law.
The Department of Energy (DOE) has long been pushing Shell to proceed with the IPO since it is a requirement under the Oil Deregulation Law.
The law requires all oil refiners to sell at least 10 percent of their common stocks to the public.
Shell officials said the company would start working on the IPO possibly in two to three months after it completes a final investment decision (FID) on its planned refinery expansion.
“That’s dependent on whether we get the FID, which is (expected) anytime soon… probably within the next two or three months to get that,†Edgar Chua, Shell country manager, said. “Then we start working on the IPO.â€
Shell is looking at expanding its 110,000-barrel per day (bpd) refinery in Tabangao, Batangas to meet new fuel standards that would take effect in 2016.
Euro 4 is a globally accepted European emission standard for vehicles. The Euro 4 standards require fuel to have significantly low amounts of sulfur and benzene.
Last year, the DOE wrote Shell to remind it of its obligations to list in the local bourse as required under the Downstream Oil Deregulation Act of 1998.
The DOE has been pressing Shell to push through with the IPO, saying it is long overdue.
The Bureau of Internal Revenue (BIR) said every transfer/shipment of petroleum products whether from the refinery or storage facility must be accompanied by withdrawal certificate (WC) for proper monitoring and to ensure correct excise taxes are paid.
Manufacturers and exporters of petroleum product as well are required to prepare an official WC for every removal.
They must indicate the name and address of the consignee, the date of removal, quantity and description of every product removed.
The BIR has expanded the requirement to include importers of finished petroleum products.
Commissioner Kim Henares said the WC must be attached to the bill of lading if the products are shipped through a conveyance not owned or operated by the consignor/manufacturer.
For petroleum or petroleum products transported through the use of tankers or marine vessel, one WC shall be prepared and issued indicating the required information including the volume and amount of tax paid, whether imported or locally manufactured.
The taxpayer must indicate whether the product is bonded, tax exempt or tax paid.
If the product is imported, the official receipt number, amount and date of payment must be indicated.
All WCs shall be supported by sales invoice, delivery invoice and/or internal transfer of documents, if the removal is destined to the depot or storage facility owned or separated by the manufacturer/consignor, Henares said.
More service stations for PTT
PTT Philippines Corp., the local subsidiary of Thailand’s biggest oil firm, is increasing the number of its service stations to 150 in the next five years from the current 74.
It will most likely increase the budget for the expansion to around P4 billion from P2.1 billion originally.
PTT Philippines president Wisarn Chawalitanon said they have presently 74 gasoline stations around Luzon and in the province of Cebu.
Chawalitanon said PTT originally wanted to add only 75 stations, but decided to double them to 150.
“These will be put up mostly in Luzon. Initially, we plan to put up 15 new service stations a year,†he said.
PTT will also renovate existing stations and set up coffee shops and convenience stores.
A highlight of its expansion program is to put up Platinum and Premier stations, which would include mini-parks.
The smaller Premier stations also have other amenities aside from ordinary gasoline outlets.
Both are patterned after the service stations of its parent firm PTT Thailand.
Construction of PTT Premier stations is currently being done in Taytay, Rizal and the PTT Belfast in Fairview, Quezon City. They are set to open second quarter of the year.
Last week, PTT signed a 25-year lease agreement with the Bases Conversion and Development Authority (BCDA) to develop a two-hectare property along the Subic-Clark-Tarlac Expressway (SCTEX) into a service station.
The P200-million Macangcung service area will have a gasoline station, restaurants, convenience store, and emergency vehicle repair shop. – With Zinnia dela Peña