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Chevron, BLC Sign MOU to Enter into a New Lease Agreement for Country’s Energy Security

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Executives from Chevron Philippines Inc. (CPI), marketer of the Caltex brand of fuels and lubricants, and Batangas Land Company, Inc. (BLC) recently met to sign a memorandum of understanding (MOU). The memorandum was for the renewal of CPI’s lease in San Pascual, Batangas; Lapu-Lapu, Cebu; San Fernando (Poro), La Union; and Sasa, Davao City.

The MOU signing was held at the Grand Hyatt Hotel in Bonifacio Global City and was attended by CPI Country Chairman Billy Liu and BLC President Lilia Arce.

On hand to witness the event were National Development Company (NDC) General Manager Anton Mauricio, Department of Trade and Industry (DTI) Secretary Alfredo Pascual, Department of Energy (DOE) Secretary Raphael Lotilla, Batangas Governor Hermilando Mandanas, Office of Government Corporate Counsel Justice Rogelio Quevedo and U.S. Ambassador Mary Kay Carlson.

“This MOU between CPI and BLC underpins the intention of both parties to work toward a mutually satisfactory agreement for the renewal of CPI’s lease. Our terminals form the core of a network of more than 600 service stations and terminals that play a crucial role in supplying the fuel needs of the transportation, maritime, aviation and power generation sectors in the Philippines,” shared Liu.

Arce said, “Today is a momentous occasion that marks a continuous and longtime partnership. I’m glad we are signing this MOU because despite our differing interests — you in the private sector and we in the government — we have come together to strengthen our ties further and align our goals in the rebuilding of our nation’s economy.”

CPI intends to maintain significant investments on the leased premises consisting of energy infrastructure, which are indispensable for the continued, safe and environmentally sound operation of its terminals.

Aside from the Chevron Batangas Terminal, CPI’s other major terminals service the fuel needs of major growth regions. The Lapu-Lapu Cebu Terminal provides fuel for Central Visayas. The Sasa Terminal in Davao services Mindanao while the Poro Point Terminal provides quality fuels to Northern Luzon.

DTI’s Pascual said, “Chevron and BLC’s partnership is a testament to continued investor confidence in the Philippines. It signifies the country’s abilities to provide a long-term enabling environment for growth of global companies that chose to do business and stay in our country. Such collaboration is essential to fulfilling national objectives such as energy security. This will ensure Filipinos have access to reliable, safe and affordable energy, and will attract investors to expand their operations in the Philippines.”

The DOE, in a 2023 letter to the DTI, has favorably endorsed and supported CPI’s continued use and operation of its terminals in these areas to ensure the stability, advancement, and energy development objectives and security interests of the country, which are all critical to the economic growth and development of the Philippines.

DOE’s Lotilla said, “Chevron’s presence in the Philippines over many years is as a seal of good housekeeping. We have supported this step, and I hope this will encourage Chevron to actually increase its footprint the Philippines. Our demographics show that the country continues to grow, and I expect Chevron will grow fully with us.”

One of the oldest and biggest investors in the country with more than 100 years of continued presence, Chevron markets Caltex fuels, lubricants and other petroleum products in the Philippines.

Mandanas remembers, “It was my grandfather who was the mayor of the town where the Caltex refinery was started way back in the mid-50s. I remember that I was participating as an elementary school student in all the civic and social contribution programs of Caltex at the time. I congratulate the DTI, NDC, BLC and Chevron in continuing this tradition of cooperation and working together at something that is very much needed by the country, especially right now.”

The protected coastline of the Chevron Batangas terminal has been declared a sea turtle sanctuary by the Department of Environment and Naturals Resources with the annual Olive-Ridley sea turtle nesting. CPI is also actively pursuing social investment projects in its host communities, with initiatives ranging from the environment, education, livelihood, health to safety.

With the government’s drive for more private-public partnership, Justice Rogelio Quevedo commented, “I’m very happy to witness this ceremony to show the continuing commitment of US businesses in the Philippines. I’m certain that with the thrust of this administration to encourage more private-public partnerships, we will be seeing more American businesses renew their commitment to the Philippine economy. I hope that the Office of Government Corporate Counsel will have more ceremonies like this and approval of contracts, especially in terms of private-public partnerships.”

With Chevron being one of the oldest and biggest American investors in the country, Carlson relayed the US support for the MOU signing. “It truly is a celebration of two companies coming together and, as you say two nations. We are excited to grow with the Philippines. We are excited to be partners in the prosperity of both of our nations, and this is a great example today.”

“This MOU singing is a great follow-on event to President Marcos’ visit to the United States recently. It’s a very exciting time to be part of the Philippine-US partnership. President Biden announced that he will dispatch a first-of-its-kind presidential trade investment mission to the Philippines and next year, Manila will host the 2024 Indo-Pacific Business Forum. These are two other examples of the way that we are growing with the Philippines and being partners in prosperity. I look forward to joining you in a similar ceremony when Chevron and BLC sign the leases,” added Carlson.

Chevron currently operates through two subsidiaries in the Philippines. Aside from CPI, there is Chevron Holdings Inc. (CHI), which supports the company’s global business through back-office processes such as finance, human resources, information technology, downstream shared services and procurement.

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