No change in business strategy by Petron with new share ownership structure

14-May-08

Petron Corp. does not intend to change its business strategy with the new share ownership structure. Philippine National Oil Co. (PNOC) has decided not to exercise its right of first offer for the Aramco shareholding, allowing Aramco and Ashmore to proceed with the transaction. The government sat out the sale by Aramco Overseas Co. of its 40% shareholding in Petron to the London-listed Ashmore Group. PNOC holds another 40% stake in Petron and has undisputed industry leadership in the Philippines with the largest distribution and marketing network and world-class products and services, and this will not change. As part of its long-term diversification strategy, Petron recently commissioned the Philippines' first petrochemical feedstock unit-a petro fluidized catalytic cracker and a propylene recovery unit. Petron is also building a benzene-toluene-xylene unit, which will produce additional petrochemical feedstocks.