Petron Corp. is investing PHP 3.913 billion (USD 86 million) to modernize its five oil depots on Luzon island, Philippines. The five oil depots are located in Navotas; Rosario, Cavite; Limay, Bataan; Mabini, Batangas; and, Manila North.
In November 2014, the Philippine Supreme Court handed down its final decision, effectively upholding Manila City Ordinance No. 8027 which was passed in 2001, during the term of City Mayor Lito Atienza. It required Petron, Chevron Philippines (Caltex) and Shell to vacate a shared oil depot located in a 33-hectare lot in a highly densely populated area. The original ordinance was overruled by Ordinance No. 8187, which was passed during the term of Mayor Alfredo Lim in 2009.
Petron said the modernization of these five depots will not lead to their capacity expansion, although the closure of the Pandacan oil depot will take down a significant portion of its storage capacity. The modernized depots will start commercial operation in January 2016, when Petron Corp. said it will cease operations in Pandacan.
Petron also operated a world-class lube oil blending plant at its Pandacan Terminal, where it manufactures lubricants and greases.
Petron started work on alternative sites three years ago. Now, two depots are operating—one in Harbour Center, and the other one in Navotas, while another one is being completed in Rosario, Cavite.
The Board of Investments has already approved the project, granting it pioneer tax and fiscal incentives. As such, the country’s largest oil company will enjoy income tax incentives and duty-free importation of capital equipment.
As the largest oil refining and marketing company in the Philippines, Petron supplies nearly 40% of the country’s oil requirements.