LIMAY, Bataan — Petron Corp. announced Friday that it is set to invest P14.6 billion for its oil refinery here after the Authority of the Freeport Area of Bataan approved its application to become a registered enterprise of the Freeport Area of Bataan.
Petron information officer Kai Palaganas said the oil firm has committed to AFAB to undertake several capital investments amounting to nearly P3 billion to further improve the efficiency of the integrated operation of the Petron Bataan Refinery.
“We are also building two units of steam generator plants with a project value of P11.6 billion. The project will generate significant savings on the refinery’s power cost,” she said.
PBR is the biggest and only remaining oil refinery in the country.
Palaganas said they welcomed the approval of their application as a FAB-registered enterprise and thanked AFAB for this 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,” she said.
Palaganas expressed confidence 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 Corp. to become a FAB-registered enterprise after workers and management approached Mayor Nelson David and son Vice Mayor Riche David for assistance.
The application was approved last week by the AFAB board and Petron became the 12th FAB expansion area outside Mariveles town.
Despite the approval, Petron will still go on with the planned temporary shutdown of its oil refinery.
“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,” Palaganas said.
No definite date was mentioned on 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,” Palaganas added.
