The National Development Co. (NDC), the government’s investment arm under the Department of Trade and Industry (DTI), has agreed to renew for another 25 years the lease of American oil company Chevron Philippines Inc. (CPI) on certain parcels of land used for its energy infrastructure in the country.Chevron-BLC MOU Signing Proof that PH is US' Top Partner in Prosperity - [Standing L-R (back): Government Corporate Counsel Justice Rogelio Quevedo, DOE Secretary Raphael Lotilla, United States Ambassador to the Philippines MaryKay Carlson, DTI Secretary Fred Pascual, NDC General Manager Antonilo Mauricio, Batangas Governor Hermilando Mandanas; (Seated) Batangas Land Company, Inc. President Lilia Arce, Chevron Philippines, Inc. Country Chairman Billy Liu]
The memorandum of understanding was signed Monday, May 15, by Lilia Arce, president of NDC subsidiary Batangas Land Company, Inc. (BLCI) and Chevron Philippines, Inc. Country Chairman Billy Liu.
Under the MOU, CPI will enjoy another 25-year lease of the BLCI property or until 2050. Its existing land lease will expire on Sept. 30, 2025. The DTI statement did not mention the rental rate for Chevron for the next 25 years.
Chevron primarily markets Caltex's fuels, lubricants, and other petroleum products in the Philippines. It operates through its two subsidiaries in the country, Chevron Philippines, Inc. and Chevron Holdings, Inc.
The oil company has nearly 600 Caltex service stations in the Philippines, which offer a wide range of petroleum products, including Caltex with Techron gasoline, Caltex Dieser with Techron D, kerosene, lubricants, and fuel additives.
United States Ambassador to the Philippines MaryKay Carlson and Trade and Industry Secretary Alfredo E. Pascual, on Monday, witnessed the MOU signing.
During the event, Ambassador Carlson said, "This truly is a celebration of two companies coming together, but I'd like to say, of two nations. We at the embassy use a social media hashtag—#PartnersInProsperity, we are excited to grow with the Philippines, to be partners in prosperity of both of our nations and this is a great example today. This MOU signing is a great follow-on event to President Marcos' visit to the United States recently."
Pascual, who is also NDC chairman, said that the MOU signing is a testament to the outcome of the Philippine government's efforts to strengthen the Philippines-United States economic relations, especially following the recent Official Visit of President Ferdinand R. Marcos Jr. to Washington, D.C.
Since 1917, Chevron has represented the US' continued partnership with the Philippines in terms of exploring various trade and investment potentials.
"We are delighted to know that there is this intent on the part of Chevron Philippines and Batangas Land, as documented in this MOU to renew the lease on Batangas Land's assets. This is a testament to continued investor confidence in the Philippines. And it signifies the country's ability to provide a long-term enabling environment for growth of global companies that choose to do business in the country," Pascual said.
The renewal of CPI's lease for another 25 years signifies the reinforcement of the continuing partnership of the Philippines and the US and is expected to contribute greatly to the Philippine government's efforts to facilitate economic recovery and expansion, he added.
In closing, Pascual highlighted that this collaboration between CPI and BLCI is essential in fulfilling one of the country's most important objectives—pursuing energy security. “This shall help address energy supply and cost-related challenges and will provide Filipino consumers access to reliable, safe, and affordable energy,” he concluded.
The MOU signing ceremony was also attended by DOE Secretary Raphael Lotilla, NDC General Manager Antonilo Mauricio, Batangas Governor Hermilando Mandanas, Government Corporate Counsel Justice Rogelio Quevedo, Batangas Land Company, Inc. President Lilia Arce, and Chevron Philippines, Inc. Country Chairman Billy Liu.