Petron takes in 2 foreign firms to build $20B refinery

Petron Corp. on Tuesday said it has teamed up with two foreign partners to put up a new petrochemical refinery that will cost much as $20 billion and be one of the biggest private projects in the country.

"We are finalizing the study to put up a completely new oil refinery. But this will be designed mostly to produce petrochemicals, kasi napakalaki ng potential nun," Petron President and CEO Ramon S. Ang told reporters on the sidelines of the company's annual stockholders' meeting in Pasig City.

"Meron na kaming partner. Meron kaming dalawang foreign partners na kasama sa project na ito. This is one of the biggest investment ever undertaken in the history of the Philippines," he added.

The project is estimated to cost $15 billion to $20 billion, but its details have yet to be ironed out.

"Right now we have a target location and we are in the process of acquiring or doing a lease agreement or joint venture agreement with the land owners," he said, but declined to identify the area.

"A new oil refinery complex of this size requires at least 2,000 hectares and a deep sea port," he added.

The refinery will have a processing capacity of 250,000 barrels a day.

"We have to wait for ECC and other government approvals. We may start early next year, once the partners agree on equity. Financing is huge, we have to process it in different countries," Ang said. ECC is an environmental clearance certificate issued by the government.

The company plans to finance the project with 70 percent loans, and 30 percent equity.

Ang noted that Petron also plans to spend $500 million on expanding its Bataan refinery to raise production over the next two years.

"Meron kaming mga tini-tweak na mag-po-produce ng mas maraming petrochemicals," he said. — VDS, GMA News