By Dennise Williams, Staff ReporterTHE PETROLEUM Company of Jamaica Limited (Petcom), is close to being divested, Wednesday Business has been informed.
A spokesperson for the Ministry of Commerce, Industry, and Technology told Wednesday Business, "We have no comment," when asked about the transaction. But reliable sources stated that the petroleum firm is in the final stages of being sold to an international petroleum firm.
Information released by the National Investment Bank of Jamaica Limited (NIBJ) reveal that Petcom, among other assets, has been on the Government's divestment listing for 13 years. According to the NIBJ documents, all of the Government's 100 per cent holding in the firm is up for sale.
The purchase of Petcom could be part of a new entrant's strategy to establish itself as a major presence on the local petroleum scene, Wednesday Business was told.
Apart from Petcom, another local petroluem firm was snapped up by an international oil marketing firm. National Fuels & Lubricants Ltd. was bought by the French firm TotalFinaElf.
The National Fuels & Lubri-cants sale price is believed to be in the region of US$15-17 million ($915 million to $1 billion).
While National has 19 service stations, Petcom has 30 stations spread across all parishes except Trelawny.
And although petroleum experts state that the profit margin on gasoline is five per cent, Petcom's possible real estate holdings and its lubricant and liquid petroleum gas (LPG) product mix add extra interest to the sales offering.
This sale signals a reversal of the Government's policy concerning Petcom. A subsidiary of the Petroleum Corporation of Jamaica, the company was originally formed in 1973 to provide Jamaica with a safety net against strikes affecting other oil distributors on the island.
As the Government has been in a cash crunch since the 1990s, all viable assets have been put on the auction block.
In addition to Petcom, the Government has plans to sell 15 per cent of its shares in Jamaica Public Service and 100 percent of its shares in the Petrojam Refinery.
Petcom sells petroleum products for the transportation and energy sector. Their range of products includes automotive diesel, unleaded gasoline, kerosene, liquid petroleum gas (LPG), and specialty products such as turbine oil.
Petcom sells an estimated 1.5-2 million gallons of gasolene per month.
