Amid the projected losses as a result of the unprecedented drop in the prices of crude in the international market, major oil companies said it remains confident of
the Philippine market.
Randy Johnson, country manager for Chevron in an interview, said that while they are estimating to incur P1 billion losses due to oil prices volatility, this will not be a hindrance for them to push through with the projects in particular for the ethanol.
"As far as capital investment is concerned, we will continue to invest in the infrastructure for ethanol (despite the rough times)," Johnson said.
Since the company had been doing business in the Philippines for years, Johnson said they are already faimiliar with the market.
Johnson noted that when prices of crude goes up during the months of March to June, and it hit US$ 140 per barrel in July, there had been predictions that it will further go up to US$ 200 per barrel.
But Jonhnson said "nobody's been successful predicting this game" after prices started to go down in August and at the moment has hit the level of US$ 40 per barrel.
Asked if they will cut on spending in order to manage the projected lossess, they will incur by the end of this year, Johnson said they are.
"When you lose that much money, you do what you can. We have to be very careful with our operations (for next year) and to cut where we can," added Johnson.
Aside from the investment for ethanol projects, Johnson said they are also looking into other possible ventures in the country. However, he refused to give further details.
source: PNA
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