Petron Malaysia to invest USD2 billion on expansion

Petron Malaysia Refining and Marketing Bhd will invest USD2 billion (RM6.36 billion) within 10 years to expand its network and strengthen its foothold in the country, reported the Philippine Star.
Petron Malaysia, a unit of the Philippine-based Petron Corp. operates a total of 560 stations nationwide and an oil refinery in Port Dickson.
Petron Malaysia Chairman and CEO Ramon Ang, who is also the president of Petron Malaysia’s Philippine parent, San Miguel Corp., said they are currently rebranding these 560 stations. Petron Malaysia, formerly known as Esso Malaysia Berhad, opened its first Petron-branded service stations in eight locations in Malaysia in June 2012.
This investment is in line with Petron’s massive expansion program. Upgrading of Petron Corp.’s Philippine refinery in Limay, Bataan will be finished by the third quarter of 2014. Once completed, the refinery will be able to produce Euro IV petroleum products. Capacity will also be expanded from 100,000 to 180,000 barrels per day. It is investing about USD1.8 billion for this expansion and upgrading.
Ang said that the return on investments (ROI) of its oil business in Malaysia is higher compared to the Philippines because of the large demand for petroleum products in Malaysia.