PTT Plc looks set to unload all its shares in Star Petroleum Refining Co Ltd (SPRC), once the latter is listed on the Stock Exchange of Thailand.

"We are a major shareholder in several refineries," said PTT president Prasert Bunsumpun. "The refining margin is not that high. While the Dubai crude oil price has risen from US$60 (Bt2,250) per barrel to $72, the price of finished oil products have increased at a slower pace."

PTT currently holds a 49.54-per-cent stake in Thai Oil Plc, making it the refinery's largest shareholder, as well as stakes in Bangchak Petroleum Plc and Rayong Refinery Plc. Prasert said PTT has no policy to merge SPRC with any PTT refineries.

Regarding the progress of SPRC's listing plan, Prasert said the company would seek a listing early next year, at which point it plans to offer 30 per cent of its shares to the public.

After the listing, PTT's stake will be diluted from 36 per cent to 25 per cent while Chevron Caltex Trading and Transport Corporation, a unit of Chevron Corp, will see its stake trimmed from 64 per cent to 45 per cent.

Prasert said PTT might sell its entire 25-per-cent stake in SPRC to a subsidiary or any interested foreign entity. He said foreign investors from China and the Middle East have shown interest in the stake. "We're studying the details of this," he said.

At present, SPRC has the capacity to refine 150,000 barrels per day.

SPRC had previously planned to merge with Rayong Refinery, with the merged entity intending to seek a listing on the exchange. However, in 2005, PTT and Chevron were unable to reach a consensus on the merger, mainly because of disagreements over the listing plan.

Prasert said Chevron did not want the merged refinery unit to be listed because, as the largest shareholder, the company can currently buy oil from Star Petroleum at below market prices. If the unit were listed, new shareholders might not allow this to continue.

The disagreement was expected to lead to PTT disposing of its shares in SPRC, but last year Prasert insisted the 36-per-cent stake was to be maintained.

PTT instead pushed for the listing of Rayong Refinery, with the intention of integrating the refinery business with another subsidiary, Aromatics (Thailand) Plc.

Energy Reporters

 The Nation