• By The Financial District

PETRON TO SHUT DOWN BATAAN REFINERY

Petron Corporation welcomed the approval of its application as a registered enterprise of the Freeport Area of Bataan but will still go on with its planned temporary shutdown of its Petron Bataan Refinery (PBR) in Limay, Bataan.

The oil giant, in a statement, thanked the Authority of the Freeport Area of Bataan (AFAB) for the positive development.


“This registration of Petron’s refinery facility will help make Petron’s refining business more competitive by improving its financial viability in the long run,” it said.


The firm said it is confident that PBR’s registration with AFAB will address some of the major concerns confronting their refining operation.


The local government of Limay endorsed the application for Petron Corporation to become a FAB-registered enterprise after workers and management approached municipal officials for assistance.


Petron became the 12th FAB expansion area outside Mariveles town after it was approved by the AFAB board last week.


“Considering that the refining business remains challenging both here and around the world, our plan for the refinery to undergo an economic plant shutdown early this year will still proceed,” the statement said.


No definite date was mentioned for the temporary refinery stoppage.


“This move is necessary to maintain the viability of the refining segment of our business by minimizing losses from operating at a time when margins are expected to remain low,” it added.


Petron has committed to AFAB to undertake several capital investments amounting to nearly PHP3 billion to further improve the efficiency of the integrated operation of the refinery.


“We are also building two units of steam generator plants with a project value of PHP11.6B. The project will generate significant savings on the refinery’s power cost,” it said.



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