Chevron Philippines Inc. has renewed a lease on a parcel of land in Batangas owned by the government, a deal which was symbolic of the strengthened relations between the United States and the Philippines.
The agreement was signed between Batangas Land Co. Inc. or BLCI and Chevron. BLCI owns the San Pascual, Batangas property where Chevron’s largest terminal in the country is located.
BLCI is a subsidiary of the National Development Co. chaired by Trade and Industry Secretary Fred Pascual.
With the extended lease, Chevron will use the property until 2050.
US oil giant Chevron has represented America’s continued partnership with the Philippines since 1917.
Trade Secretary Fred Pascual and United States Ambassador MaryKay Carlson witnessed the signing of the Memorandum of Understanding.
“This truly is a celebration of two companies coming together, but I’d like to say, of the two nations. We at the embassy use a social media hashtag — #PartnersInProsperity. We are excited to grow with the Philippines and to be partners in the 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,” Ambassador Carlson said during the event.
Pascual, speaking as chairman of NDC, said the MoU signing is a testament to 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.
Pascual said the signing was a momentous occasion and proof of the government’s intensified investment promotion campaigns materializing.
This truly is a celebration of two companies coming together, but I’d like to say, of the two nations.
The renewal of CPI’s lease for another 25 years signifies the reinforcement of the continuing partnership between the Philippines and the US and is expected to contribute greatly to the Philippine government’s efforts to facilitate economic recovery and expansion.
Testament of confidence
“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 the growth of global companies that choose to do business in the country,” Pascual said in his message.
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 company has nearly 600 Caltex service stations in the Philippines, which offer a wide range of petroleum products, including Caltex with Techron gasoline, Caltex Diesel with Techron D, kerosene, lubricants and fuel additives.
In 2020, the deal was questioned by Finance Secretary Dominguez when the deal allowed the renter to pay a monthly rental fee of just 74 centavos per square meter on a 120-hectare or 1.2 million sq. m. state property in Batangas.
Comparative data from NDC appraisal reports and other official sources show that the current fair market rental value back then in that area should be around P17.90 per sq. m. per month.