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Petron Corporation

From Wikipedia, the free encyclopedia
Not to be confused with Petronas or Perton (disambiguation).
Petron Corporation
Company typePublic Subsidiary
PSE: PCOR
IndustryOil and Gas
FoundedSeptember 7, 1933; 91 years ago (1933-09-07) (as Standard Vacuum Oil Company (Philippines))
Headquarters
Area served
Philippines
Malaysia[1]
Key people
  • Ramon S. Ang (Chairman, President and CEO)[2]
  • Lubin B. Nepomuceno (General Manager)[2]
  • Emmanuel E. Eraña (SVP & CFO)
ProductsOil
Natural gas
Oil refining
RevenueDecrease 287.08 billion PHP (2020)
Decrease -16.21 billion PHP (2020)
Decrease -11.41 billion PHP (2020)
Total assetsDecrease 349.73 billion PHP (2020)
Total equityDecrease 86.2 billion PHP (2020)
Number of employees
9,236 nationwide (2019)
ParentSan Miguel Corporation (68.26%)[3]
Websitewww.petron.com

Petron Corporation is the largest oil refining and marketing company in the Philippines,[4] supplying more than a third of the country's oil requirements. It operates a refinery in Limay, Bataan with a rated capacity of 180,000 barrels per day (29,000 m3/d). From the refinery, Petron moves its products mainly by sea to 32 depots and terminals throughout the country.

History

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Petron Megaplaza in Makati, Philippines was Petron's headquarters from 1998 to 2010.

Petron's history dates back to September 7, 1933, when Socony-Vacuum Oil Company (Standard Oil of New York) and Standard Oil of New Jersey (also known as Jersey Standard) merged their interests in the Far East into a 50–50 joint venture named the Standard Vacuum Oil Company (Stanvac). It operated in 50 countries, including the Philippines, New Zealand, China, and the region of East Africa.

In 1953, the Philippine national government, partly to promote Claro M. Recto's national industrialization program and partly to respond to increasing international oil prices, attempted to launch a national oil company that caters Filipino consumers with affordable petroleum products. In 1957, Stanvac won the concession to build and operate a refinery in Bataan. For this purpose, FilOil Refinery Corporation was established in 1959.

In 1962, Stanvac was dissolved and the marketing and refining interests were divided between the former partners. Esso Philippines, Inc. took over Stanvac's Philippine operations, including FilOil Refinery Corporation. Esso was a trade name used by Standard Oil of New Jersey.

In 1973, the Philippine government, through the Philippine National Oil Company (PNOC), acquired Esso Philippines, Inc., including FilOil Refinery Corporation. Esso Philippines, Inc. was renamed Petrophil Corporation (Petrophil) and by 1974, Esso filling stations were rebranded as "Petron", a portmanteau of petroleum (PET) and research octane number (RON).[5] Subsequently, Mobil (successor of Socony-Vacuum Oil Company) also sold its share in FilOil Refinery Corporation to PNOC. The oil refining and marketing units in PNOC, including FilOil Refinery Corporation, were merged into Petrophil Corporation. In 1988, Petrophil Corporation was renamed Petron Corporation.

As part of the government's privatization program under President Fidel V. Ramos, PNOC sought a strategic partner that would give Petron a reliable supply of oil, plus access to state-of-the-art refining technology. The result was a partnership with the world's largest oil producer, Saudi Aramco. On February 3, 1994, PNOC and Aramco Overseas Co. B.V. signed a share purchase agreement that gave both an equal 40% stake in Petron Corporation.[6] The remaining 20% of Petron shares were sold to the public.

On August 11, 2006, a Petron oil tanker Solar 1, carrying fuel oil sank, causing the Guimaras oil spill, the biggest oil spill in Philippine history.[7][8]

In 2008, Saudi Aramco sold its entire stake to the Ashmore Group, a London-listed investment group. Ashmore acquired an additional 11% when it made a required tender offer to other shareholders. By July 2008, Ashmore, through its SEA Refinery Holdings B.V., had a 50.57 percent of Petron's stock.[9] Ashmore's payment was made in December 2008.[10] In December 2008, Ashmore acquired PNOC's 40% stake. In the same month, San Miguel Corporation (SMC) said it was in the final stages of negotiations with the Ashmore Group to buy up to 50.1 percent of Petron.[11] In 2010, SMC acquired majority control of Petron Corporation.[12]

In January 2013, Petron officially opened their Malaysian operations, rebranding all Esso and Mobil stations across Peninsular Malaysia.[13]

On November 9, 2021, SMC CEO Ramon Ang offered to sell Petron back to the government in response to calls for re-nationalization due to rising fuel costs.[14]

Products and services

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Petron oil station located beside the Daily Express building in Kota Kinabalu, Sabah, Malaysia.

The company's ISO-14001-certified[4] refinery processes crude oil into a full range of petroleum products, including LPG, gasoline, diesel, jet fuel, kerosene, industrial fuel oil, solvents, asphalts and mixed xylene.[15] Petron's lube oil blending plant produces mechanical lubricants and grease. These products are also sold through service stations and sales centers, and directly to industrial customers with the largest client being the power sector. Petron also supplies jet fuels to international and domestic carriers.

Through more than 1,200 service stations, they retail gasoline, diesel and kerosene to motorists and public transport operators. They also sell their LPG brand Gasul to households and other consumers through an extensive dealership network.

Petron opened its first fuel additives blending plant in the Asia-Pacific region at the Subic Bay Freeport Zone in November 2008. The plant has the capacity to blend 12,000 metric tons (MT) of fuel additives per year. In 2006, the facility was constructed in partnership with Innospec. As part of the agreement.

In April 2008, Petron commissioned the country's first petrochemical feedstock units, at its 180,000-barrel (29,000 m3)-per-day Bataan Refinery.

The feedstock unit converts black products (fuel oil) into LPG, gasoline, and diesel. It also purifies propylene to manufacture food packaging, appliances, suitcases, furniture, DVDs and car parts.

Sports teams

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See also

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References

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  1. ^ "Who We Are".
  2. ^ a b "Petron appoints Danding Cojuangco as chairman". ABS-CBN News.
  3. ^ "Page 48 -Definitive Information Statement - San Miguel Corp. - May 13 2011" (PDF). Archived from the original (PDF) on 2012-08-13.
  4. ^ a b Gonzales, Iris. "Petron gets world class certification anew". Philstar.com. Retrieved 2022-04-01.
  5. ^ Road Trip. Top Gear Philippines. p. 9.
  6. ^ "Philippine President Rejects Buy-Back of Petron Stocks From Aramco". Tehran Times. 1 September 1999. Retrieved 22 April 2024.
  7. ^ Sarah Toms (15 August 2006). "Oil spill threatens Philippines". BBC News. Retrieved 15 July 2013.
  8. ^ "Arroyo forms task force to oversee oil spill cleanup". INQ7.net. 2006-08-23.
  9. ^ "Ashmore gets majority of Petron". Philippine Daily Inquirer. 2008-07-23. Retrieved 2010-08-05.
  10. ^ "Ashmore pays P25.7B for stake in Petron". Philippine Daily Inquirer. 2009-01-05. Retrieved 2010-08-05.
  11. ^ "San Miguel tightens grip on Petron". Philippine Daily Inquirer. 2008-12-24. Retrieved 2010-08-05.
  12. ^ "San Miguel acquires majority of Petron". ABS-CBN News. 16 December 2010. Retrieved 8 May 2018.
  13. ^ "Introducing Petron Corp. of the Philippines, Now in Malaysia" (PDF). Petron Corp. Retrieved 2013-01-23.
  14. ^ Corrales, Nestor (9 November 2021). "Ang says gov't can buy back Petron 'anytime'". INQUIRER.net. Retrieved 11 November 2021.
  15. ^ Times, The Manila (2015-10-16). "Petron among PH's top 3 sustainable corporations". The Manila Times. Retrieved 2022-04-01.
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