Leading oil firm Petron Corporation is exploring the possibility of offering 40-percent of new shares to a prospective partner as part of its strategy for $1.0 billion cash infusion that will underpin investments for planned upgrading of its refining facility in Limay, Bataan.

Meanwhile, Petron declared cash dividend of P0.10 per share at its annual stockholders’ meeting at the Valle Verde Country Club in Pasig City Monday. Payout will be given to holders of common shares as of record date July 30, 2010, and settlement date will be on August 16 this year.

Petron Chairman and Chief Executive Officer Ramon S. Ang told reporters “we are in talks with various foreign parties”, and it was hinted that PTT Group of Thailand is one of them.

The plan to upgrade the oil firm’s refinery will be done in phases and may entail an investment of about $1.6 billion or even higher as the facility turns into a more complex state. The next phase of the refinery upgrade may cost $1.2 billion.

Petron president Eric O. Recto qualified that there are various options being considered to inject capital for the planned refinery upgrade.

“One possibility is for Petron itself to issue new shares,” he said; while the others may include a joint venture with the incoming partner or for the company to issue primary and secondary shares.

He said the company would likely opt for a partner that can contribute to the technical expertise in enhancing the operations of the refinery and in pursuing further upgrade; hence, the preference that the tie-up would be with a firm which also has experience in refinery operations. “We’re still working on the final number, including the right company,” he stressed.

In a related development, the oil firm has disclosed the signing of a technical services agreement with Thai firm PTT’s Integrated Refinery and Petrochemical Company Public Limited (IRPC) for a separate investment on prospective investment on a petrochemical facility.