Chevron and BLC signs MOU to enter into a new lease agreement for country’s energy security

Government officials witnessed the signing of Memorandum of Understanding between Chevron Philippines Inc. and Batangas Land Company Inc.

From left to right: Government Corporate Counsel Justice Rogelio Quevedo, Secretary of the Department of Energy Raphael P.M. Lotilla, US Ambassador Mary Kay Carlson, Secretary of the Department of Trade and Industry Alfredo E. Pascual, General Manager of National of Development Company Anton Mauricio, Governor of Batangas Hermilando Mandanas, CPI Chairman Billy Liui and Batangas Land President Lilia Arce.

BGC, Philippines, May 17, 2023 — Chevron Philippines Inc. (CPI), marketer of the Caltex brand of fuels and lubricants, and Batangas Land Company, Inc. (BLC) today signed a memorandum of understanding (MOU) to work towards a mutually satisfactory agreement 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 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,” shared 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.”

CPI intends to maintain significant investments on the leased premises consisting of energy in- frastructure 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 services 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 Sec. 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, has favorably endorsed and supported 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.

DOE Secretary Raphael Lotilla said, “Chevron’s presence over the many years in the Philippines is one that I see 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 that I expect Chevron will grow fully with us.”