Petron Corp. is acquiring a 140-megawatt solid fuel power plant of SMC PowerGen Inc. at the Petron refinery complex in Bataan province.
Petron said in a disclosure to the stock exchange Thursday its executive committee granted an authority to the company to negotiate, enter into and conclude with SMC PowerGen the relevant definitive agreements “for the purchase and acquisition” of the power plant “under such terms and conditions that the management may deem proper.”
“The executive committee likewise authorized the company to secure and avail of credit facility agreements to fund the proposed acquisition of the power plant,” Petron said.
The country’s biggest oil firm said it would make the appropriate disclosures in the event definitive agreements were reached.
Petron and SMC PowerGen are both controlled by conglomerate San Miguel Corp.
Petron did not disclose why it was acquiring the plant from SMC PowerGen.
The 140-MW power plant started commercial operations in May 2013 and availed of the income tax holiday from May to September 2013.
The Board of Investments approved the the transfer of the certificate of registration of the power plant to SMC PowerGen.
Petron uses power generated from the power plant for the power requirements of its 180,000-barrel-per-day refinery in Bataan.
Petron invested $2 billion to further upgrade its Bataan refinery and make it at par with the most advanced refineries in the region.
Refinery Master Plan – 2 allows Petron to produce more higher-value products such as gasoline and petrochemicals while eliminating negative margin fuel oil.
Petron is the largest oil refining and marketing company in the Philippines and is a leading player in the Malaysian market.
It has a combined refining capacity of 268,000 barrels per day and produces a full range of world-class fuels and petrochemicals.
Petron has more than 2,800 service stations where it retails gasoline and diesel.
