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Philippines: Petron, San Miguel to set up energy joint venture
Oil refiner and retailer Petron Corp. has agreed to enter into a joint venture with San Miguel Energy Corp. for the establishment of a solid fired fuel power plant in Bataan, reported the Daily Inquirer.
In a disclosure to the Philippine Stock Exchange Monday, Petron corporate secretary Joel Angelo Cruz said the oil firm’s management committee approved management’s proposal to invest in a joint venture with San Miguel Energy.
The joint venture would see to the establishment of a power plant that would address the refiner’s power supply requirements at its refinery in Limay, Bataan.
Petron two months ago raised 10 billion peso from the issuance of preferred shares at the local bourse.
The oil firm said that half of the proceeds from the issuance would be earmarked for the construction of the power plant, which had been estimated to cost around 10 billion peso. Construction should start within the year, Petron said.
The issuance of the preferred shares would also fund the oil refiner’s 3.9-billion peso loan repayment scheduled for the year, as well as its planned 1-billion peso retail network expansion.
The company targets to spend 1 billion peso yearly over the next five years to further expand its retail presence.
Petron in the first quarter bounced back from a 3.9-billion peso net loss to register a net income of 4.3 billion peso.