MANILA (AFX-ASIA) – The government will not yet exempt Caltex Philippines Inc from the mandatory initial public offering even if it has decided to stop its local refining operations, Energy Secretary Vicente Perez said.

“Under the Oil Industry Deregulation Law, only oil refiners should list. Since Caltex is not anymore (operating) a refinery, we cannot compel them to offer shares to the public. But we have to coordinate with other agencies if there are other provisions in the law which may require Caltex to list,” he told reporters.

Caltex announced last week it will convert its refinery in San Pascual, Batangas, south of Manila into a world-class storage terminal.

Caltex said it will import its refined oil product requirements after the closure of the refinery, and will invest more than 750 million pesos for the conversion move. (US$1=55 pesos).

The terminal is expected to be operational by the last quarter of this year.