THE Philippine National Oil Co. (PNOC) has tapped ING Group to assess Ashmore Group’s offer  to buy Aramco Overseas Co.’s 40-percent shares in Petron.

Aramco wants to sell its stake in Petron for $550 million to Ashmore Group’s SEA Refinery Holdings.

“We have tapped ING to help us in evaluating the Aramco shares that Ashmore intends to buy,” Antonio M. Cailao, PNOC president told reporters.

The Department of Energy (DOE) earlier said it will look into the said offer, and will engage an independent financial advisor to make an independent valuation and give the government sound advice.

Energy Secretary Angelo T. Reyes said they would have to decide on whether the government should buy Aramco’s holdings; approve the sale; or assign the transaction to a third party.

Pricing the shares would take time and a lot of study, according to Reyes.

PNOC was given 60 days to make a decision on the Petron shares.

Global asset management firm Ashmore, whose shares are traded on the London Stock Exchange, manages $36.5 billion in assets and has a track record for partnerships worldwide that include Philippine-related investments over a period of many years.

Reyes, who is concurrently PNOC chairman, said a study would have to look into the valuation of shares, especially the price acceptable to the government.

“And do we have the money?” he asked, and pointed out that PNOC is the state entity that would have to buy the Petron shares.

“…We would first need to look at the cash flow from the proceeds of Malampaya as sources for funding for this, [in case] we decide to exercise that option,” Reyes added.

A source who requested anonymity, however, disagreed, saying privatization and deregulation are part of a broad policy of economic liberalization that the government has been pursuing for the last 20 years to spur investments and accelerate economic growth.

 In the downstream oil industry, the twin policies of privatization and deregulation are also meant to achieve market-related pricing of petroleum products that promotes efficient consumption of a scarce resource and frees government of administering oil prices that are often subject to political pressures, the source explained.

“With deregulation, Petron had to be privatized. It was pointless to deregulate if government would continue to determine local-oil prices through a state-owned company,” the source added.

TOP British companies are eyeing the combined strengths of China and the Philippines as better sites to India for multibillion dollar investments in business process outsourcing (BPOs) and information technology (IT).

PNOC seeks ING Group’s advice

THE Philippine National Oil Co. (PNOC) has tapped ING Group to assess Ashmore Group’s offer  to buy Aramco Overseas Co.’s 40-percent shares in Petron.

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