Oil giant Petron Corp. is planning to raise up to P15 billion ($310 million) via a private placement of fixed-rate notes starting next month, its president said on Tuesday.

Eric Recto told reporters proceeds of the notes issue would fund the company's five-year expansion plan worth $700 million to $1 billion.

Petron's refinery in Bataan is now on its second phase of upgrade and the company is investing heavily on its petrochemical venture.

Petron has moved into production of petrochemical feedstock propylene as a new revenue stream amid shrinking earnings from the oil refinery business due to the economic crisis.

In 2008, the company posted a net loss of P3.9 billion, reversing profits of P6.4 billion in 2007, due to huge inventory losses.

It said volatile crude prices, which peaked at $147 per barrel in July, and the drop in domestic prices in the later part of the year resulted in lower margins. -Judith Balea, abs-cbnNEWS.com; Reuters