Philippines' Petron Corp., accounting for 40% of the nation's fuel requirement, has attracted JG Summit Holdings Inc. to buy the government's 40% stake in the company. JG Summit is not in a position to increase their offer until the terms of reference for the sale of the government's stake in Petron has been released. JG Summit's offer of US$577 mln for government's 3.75 bln shares in Petron was believed to be low by the government. As per a government official, the shares held by the Philippine National Oil Co. in Petron are to be sold at a premium.
The approval of President Arroyo is awaited before privatizing Petron, the country's largest oil refinery. Petron is looking to kick start a new facility at its 180,000 bpd Manila refinery, thereby increasing the gasoline production and extraction of propylene. In 1998, a subsidiary JG Summit Petrochemical Corp. had established the country's first integrated polypropylene (PP) and polyethylene (PE) complex in Batangas.