Energy Secretary Alfonso Cusi, who also sits as PNOC chairman, earlier directed the government’s oil and gas arm to negotiate with Petron. PNOC through Lista has been trying to get a higher lease rental from Petron, citing provisions in the current contract that were allegedly disadvantageous to the government. Petron has existing lease agreements with PNOC for the sites of its $3-billion refinery in Bataan, 24 bulk plants and 67 gasoline stations. Petron said it was compelled to give up its land to PNOC in 1993 to comply with the requirements of its privatization. “PNOC disregarded the true consideration for the leasehold rights acquired by Petron over the properties, which included not only the rental payments but the properties themselves, which Petron had conveyed to PNOC pursuant to privatization,” Petron said.

Source: The Standard October 29, 2017 13:18 UTC