By GENIVI FACTAO

Petron Corp. yesterday said the $1.5 billion expansion plans would push through, as it sees a more diversified company, when the sale of Saudi Aramco shares in Petron is completed.

Petron chairman and CEO Nicasio Alcantara said Petron has a relatively happy relation with Saudi Aramco for about 14 years, being its strategic partner.

He said the planned sale of 40 percent stake in the firm to British investor Ashmore Group’s SEA Refinery Holdings for $550 million is a win-win solution.

Alcantara said Aramco is taking bigger steps, investing $50 billion in the Kingdom, $20 billion each for China and India.

The Philippines is a very small market.

"The best position is to sell your equity position and retain the crude oil market, and that’s what they did. They divested their equity position and kept the 40 percent crude oil market" he added.

The sale is expected to be completed within 60 days, and is given 30 days for extension, should they ask for it.

He said one of the prequalifications of the buyer is to have a legitimate crude oil sales agreement equivalent to what it had.

Aramco he claimed has the final decision whether to sell to Ashmore, or look for a company with the same qualifications of Ashmore.

Alcantara said, its future projects would push through as planned.

The $1.5 billion expansion will be used to finance another Petro Fluidized Catalytic Cracker (PetroFCC), which will start development next year.

"We have to move a little more faster now that we are partly owned by a performance based asset management," he said.

"What we’re trying to do is improve the profitability of the company. Move it from a general gross profit of about 8 percent or better," he said.

Alcantara said Petron’s position of leadership in oil refining would not change.

"We’re a strong organization," he said.