|
 San Miguel Corporation (SMC), which acquired a 65% stake in ExxonMobil Corporation's interest in three businesses operating in the Malaysian downstream petroleum sector, plans to invest up to US$1 billion to upgrade and install new equipment in the 48-year-old Port Dickson refinery.
Member of the Board of Directors of SMC Eric Recto said
the corporation was looking at bringing in new machinery to create more
value-added products in the Malaysian market. "We are looking at the same achievement we did when we acquired Petron Corporation three years ago.
"The Malaysian refinery is a useful asset, given that a fair level of
investment is poured in to replace the old machinery and equipment," he
told Malaysian journalists via voice-conference from Manila today.
SMC holds 68% equity in Petron Corp.
Recto, who is also Petron Corp president, said the plan would be executed over a long-term process between three and five years.
Recto said the upgrading would enable the Port Dickson refinery, which
currently produces 50,000 barrels per day, to maximise the plant's
production capacity to 88,000 barrels a day.
The investment, he said, would be divided into two segments; the first
70% would be derived from financial institutions, while the
remaining 30% would be from San Miguel.
"In this case, ExxonMobil Malaysian operations can stand on its own as it will fund 30 per cent of its operations in Malaysia.
"Only if extra investment assistance is needed, SMC would step in.
However, we will be very very careful from where the money comes from,"
he said, citing the recent concerns from locals about where the money
will come from, given that San Miguel was a beer company initially.
Recto clarified that currently SMC, based in the Philippines, is a
highly diversified conglomerate, with businesses ranging from food and
beverages to petroleum, power, energy and infrastructure.
The company now derives more than 70% of its revenue from the non-food and beverages segment.
As for the bank, Recto said banks from both Malaysia and the Philippines
were keen to finance the company's investment expenditure.
"There will be no doubt that Malaysian banks will be given priority, given their achievements and capabilities," he said.
In enhancing human capital, Recto said SMC promises not to retrench any
of the existing operational staff in the refinery and in other
businesses as SMC needs all of them, and even more workers in the future
in tandem with its goal to maximise utilisation of the refinery.
"We will be creating more job opportunities and the first priority will be given to Malaysians.
"When we first acquired the Manila refinery, we needed around 20-25% extra workers to rebuild and reorganise the plant," he said, adding
that a similar workforce might be needed in Port Dickson.
PETROLWORLD 28/08/2011 Source: Bernama
|
