Petron board approves P8.9 bln for capital spending in 2006

01-Dec-05

The board of directors of oil refiner Petron Corp. have approved an operating budget of 8.92 billion pesos for 2006. 50% of this, or nearly 4.2 billion will go to capital spending, endorsing the company's 2006 to 2010 business plans. Last month, Petron had earmarked US$300 mln for additional refinery units over a three-year period to extract new petrochemicals like benzene, toluene and propylene and expand its mixed xylene capacity. These facilities will come on stream by 2008. Diversification into the petrochemicals business will ensure the company's growth and profitability in the long-term.