President Arroyo welcomed on Friday an offer made by London-based investment firm Ashmore to buy the 40-percent stake of Saudi firm, Aramco Overseas Corp., in Petron Corp., saying it was a vote of confidence in the country's "positive" business climate.

"The decision by Ashmore to purchase the shares of Petron Corp. currently held by Aramco Overseas Corp. is both a validation of the very successful privatization of an important Philippine company and a vote of confidence in Petron and the positive environment that has been created for foreign investment in our country," she said in a statement.

SEA Refinery Holdings, a subsidiary of Ashmore, offered to purchase Aramco's 3.75 billion shares in Petron for $0.15 per share or a total of $550 million (P22.6 billion). Aramco, which has held the shares for 14 years, has agreed to the deal.

Mrs. Arroyo said the transaction will not represent a withdrawal of Aramco from the Philippines since the Saudi oil firm will "maintain its ties to the Philippines through the commitment by its parent, Saudi Aramco."

Saudi Aramco, the state oil firm of the world's largest oil exporter, Saudi Arabia, has been supplying crude oil to Petron.

Arroyo said the transfer of the shares from Aramco to Ashmore will be reviewed by state-owned Philippine National Oil Co. (PNOC), which also owns 40 percent of Petron. The remaining 20 percent is held by the public.

"Should Ashmore receive PNOC's approval, it will mean that a company that knows the Philippines well through its investment in our international financing and in an important utility, Maynilad Water, will be expanding its operations in our country," Arroyo said.

In an earlier statement, Petron chairman and chief executive Nicasio Alcantara said that, "regardless of the company's ownership structure…we will continue to focus on initiatives to sustain our growth momentum and deliver the best value to our stakeholders."

Petron holds a 40-percent market share of the Philippines' total fuel requirements and has 1,250 service stations, the largest network in the country.