State-owned National Development Co. (NDC) is just awaiting for a confirmation by Chevron Philippines, formerly Caltex Philippines, on the agreement covering the extended lease of the San Pascual, Batangas property which would be converted into a regional crude oil storage and blending facility with a 300-megawatt power plant.

NDC general manager Ma. Lourdes Rebueno told reporters on Friday that the long-term contract agreement was sent for Chevron’s confirmation after the Privatization Council has approved of the deal.

Chevron Philippines is planning to convert its 40-hectare Batangas terminal into a regional crude oil storage and blending facility with a 300-megawatt power plant after the government has renewed its lease on the property for another 25 years.

On August 17, 2009, the NDC Board approved the lease contract renewal of Chevron with Batangas Land Company Inc., which is 60 percent owned by NDC.

“The approved lease renewal is the result of long negotiations between the parties which culminated in mutually acceptable terms and conditions of the new contract of lease,” Rebueno said.

Rebueno, however, refused to divulge the agreed lease payments except to say that it was a “much, much improved offer.”

The lease retroacts from Oct. 1, 2000 and ends on Sept. 30, 2025.

“In the lease renewal, Chevron committed to continue its capital investments in the Philippines, particularly in the San Pascual, Batangas Terminal,” Rebueno said.

These investment opportunities may include establishment of a Regional Crude Oil Storage and Blending Facility and a 300 megawatt power plant, she added.

NDC has requested a final approval from the Privatization Council for the renewal of the lease of Chevron with BLC.

Rebueno said the lease renewal covers various parcels of land in situated in 21 locations all over the country, the biggest parcel of which is situated in San Pascual, Batangas, the site of Chevron’s import terminal.

Its world-class finished product import terminal has a storage capacity of roughly 2.7 million barrels.

Chevron, formerly Caltex ( Philippines) Inc., is the country’s third biggest oil player in the country with a market share of 13.7 percent.

In 2003, Chevron shut down the country's first petroleum refinery having been established in 1954, and converted it into a finished-import terminal with a capacity of at least 2.5 million barrels.

The refinery area includes a pier facility that can accommodate large vessels such as oil tankers. The facility can be converted by Chevron into an industrial zone or an export processing facility but NDC, as a major stockholder in the Batangas Land, would have a critical role on what to do with the property.