July 22 (Reuters) – An initial public offering by Star Petroleum Refining Pcl, a joint venture of Chevron Corp (CVX.N) and Thailand’s PTT (PTT.BK), may be delayed from this year, a senior PTT official said on Thursday.
The delay was mainly because the company needed more time to revise a contract made with the government, the official, who declined to be identified, told Reuters.
“There’s still a lot more paperwork, along with other processes. And the IPO may not be ready in time for this year,” the official said.
Chevron owns 64 percent of Star Petroleum, which operates a refinery with capacity of 150,000 barrels per day in eastern Thailand. PTT owns 36 percent.
PTT Chief Executive Prasert Bunsumpun had said in March the shares could be listed this year. [ID:nSGE62L080]
But the PTT official, referring to industry refining margins that averaged $3-$4 a barrel, said: “This might not be such a good time to do it with the refining margin staying at a relatively low level.”
The listing has faced years of protracted negotiations between Chevron and PTT. It has been put off since 2008, in part due to weak stock market sentiment.
At the midday break, PTT shares were down 0.8 percent at 243 baht, while the broader Thai index .SETI was 0.3 percent higher. ($1= 32.28 Baht) (Reporting by Pisit Changplayngam; Writing by Ploy Ten Kate; Editing by Alan Raybould)