Chevron Philippines Inc. (CPI), marketer of the Caltex brand of fuels and lubricants, and Batangas Land Company, Inc. (BLC) have signed a memorandum of understanding (MOU) to renew CPI’s lease in San Pascual, Batangas; Lapu-Lapu, Cebu; San Fernando (Poro), La Union; and Sasa, Davao City.
Formal signing was held at the Grand Hyatt Hotel in Bonifacio Global City between 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 towards a mutually satisfactory agreement for the renewal of CPI’s lease. Our terminals form the core of a network of over 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,” said Billy Liu, CPI chairman.
BLC President Lilia 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 [as], you, in the private sector, and we, in the government, have come together to strengthen our ties further and align our goals in the rebuilding of our nation’s economy.”
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.
Trade Secretary Fred 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. First, this will ensure Filipinos to have access to reliable, safe and affordable energy. And second, this will attract investors to expand their operations in the Philippines.”
The DOE, in a 2023 letter to the DTI, favorably endorsed CPI’s continued use and operation of its terminals in these areas to ensure the stability, advancement, energy development objectives and security interests of the country which are all critical for the economic growth and development of the Philippines.
At present, Chevron operates through two subsidiaries in the Philippines. Aside from CPI, Chevron Holdings Inc. (CHI) supports the company’s global business through back-office processes such as finance, human resources, information technology, downstream shared services and procurement.
