MAJOR OIL PLAYERS IN THE PHILIPPINES

INGLES, JAYZEL Z. BSME-5th YEAR

INDUSTRIAL PLANT ENGINEERING CASE STUDY
INSTRUCTOR: ENGR. BIENVENIDO MANUNTAG
The three major oil players namely Petron Corp., Pilipinas Shell Petroleum Corp. and
Chevron Phils. cornered 60.3 percent of total demand as of end-2015, while other industry
players captured 39.7 percent of the market, latest DOE data showed.
Ranking:
Petron maintained its lead with a 30.4 percent market share, followed by Shell with 23 percent
and Chevron with 6.9 percent.
PETRON CORPORATION
Petron Corporation is the largest oil refining and marketing company in the Philippines.
Supplying nearly 40% of the countrys oil requirements, their world-class products and quality
services fuel the lives of millions of Filipinos every day. They operate an integrated crude oil
refinery and petrochemicals complex with a rated capacity of 180,000 barrels per day in Limay,
Bataan. Their Integrated Management System (IMS)-certified refinery processes crude oil into a
full range of petroleum products including gasoline, diesel, liquefied petroleum gas (LPG), jet
fuel, kerosene, industrial fuel oil, and petrochemical feedstock benzene, toluene, mixed xylene,
and propylene. From the refinery, they move their products via barges and marine vessels to 32
International Organization of Standardization (ISO)-certified depots and terminals situated all
over the country. Through this vast distribution network, they supply fuel oil, diesel, and LPG to
various industrial customers. Petron also supplies jet fuel at key airports for international and
domestic carriers.
They have the largest retail network. With nearly 1,900 service stations, They bring their
superior automotive fuels closer to motorists. They have the most extensive petroleum product
line in the Philippines. Always at the forefront of fuels technology, They continuously pioneer
ground-breaking products that tailor fit the lifestyles of their customers. Petron Blaze 100, for
instance, is one of the fewif not the onlycommercially available gasoline in the world with a
100 octane rating.
Their stations give a one-stop service experience to travelers, offering amenities
including convenience stores, restaurants, and specialty shops. They operate repair and
maintenance centers to cater to the specific requirements of motorists. Besides selling their
lubricants and specialty products here, these centers are outfitted with modern equipment and
manned by well-trained technicians. Their LPG brands, Gasul and Fiesta, have been an intrinsic
part of their customers households for many decades. Through their nationwide dealership
network, They offer and deliver them at their doorsteps. Their commitment to innovation has led
us to introduce a variety of Petron Cards to the market. Each of their cards has been engineered
to encourage convenience and ensure customer satisfaction in every swipe. An example is the
Petron Fleet Cardthe first microchip-pothered fleet card in the Philippines.
They operate a polypropylene (PP) plant with a rated capacity of 160,000 metric tons of
PP resin annually. They run a lube oil blending plant, which manufactures their lubricants and

greases. They also run one of the most modern blending facilities in Asia, which enables us to
formulate the unique fuel additives They use to produce their premium fuels.
They export various petroleum and non-fuel products to Asia-Pacific countries such as
Japan, India, Malaysia, Singapore, South Korea, Thailand, Pakistan, and even to the United Arab
Emirates. To further expand their international presence, They recently established Petron Oil
and Gas International to run three companies in Malaysia that comprise an integrated
downstream business. Beyond their business agenda, They take their corporate and social
citizenship to heart. They roll out and incorporate programs that address national concerns in
education, environment, and health and human services into their operations to ensure
sustainability and contribute to social development. With nearly 80 years of experience in the oil
industry, They continue to be dedicated and passionate about their vision to be the leading
provider of total customer solutions in the energy sector and its derivative businesses.
PETRON PRODUCTS
PETRON BLAZE 100
Density at 15oC, kg/m3 757.2 (Typical)
Water Solubility: Insoluble
Odor: Characteristic of petroleum products
Appearance: Clear liquid
Color: Visual Blue
Boiling Point oC: 35 - 210 (Typical)
Percent Volatile: 98% at boiling range
Reid Vapor Pressure: kPa at 37.8 oC 38
psi at 37.8 oC 5.5
Vapor Density (air=1) > 5

Color: Red
Boiling Point, oC: 36-205
Percent Volatile: 98% at boiling range
Reid Vapor Pressure: kPa at 37.8 oC = 52
psi at 37.8 oC = 7.5
Vapor Density (air=1) > 5
PETRON TURBO DIESEL
Density at 15 oC, kg/m3: 830.5
Water Solubility: insoluble
Odor: Characteristic of petroleum products
Appearance: Clear
Color: L2.5
KV at 40oC, cSt: 3.177

PETRON XTRA ADVANCE

PETRON DIESEL MAX
o

Density at 15 C, kg/m3: 745.0 (Typical)

Water Solubility: Insoluble
Odor: Characteristic of petroleum products
Appearance: Clear liquid
Color: Visual Light Green
Boiling Point, oC: 35 to 205 (Typical)
Percent Volatile: 98% at boiling range
Reid Vapor Pressure: kPa at 37.8 oC 58.0
psi at 37.8 oC 7.0
Vapor Density (air=1) > 5
PETRON XCS
Density at 15 oC, kg/m3: 739.8
Water Solubility: insoluble
Odor: Characteristic of petroleum products
Appearance: Clear liquid

Density at 15 oC, kg/m3: 834.4

Water Solubility: insoluble
Odor: Characteristic of petroleum products
Appearance: Clear
Color: 0.5
KV at 40oC, cSt: 3.071
FUEL PRICE

Prior to the price adjustments, diesel ranged

between P21.75 and P25.17 per liter, while
gasoline within the P34.30 to P42.39 per liter
range.

Pilipinas Shell Petroleum Corporation

Shell's corporate presence in the Philippines dates back to 1914 when Shell organized a
trading office in the Philippines. Business then largely involved the importation and sale of
kerosene mainly for household use in Manila and outlying areas. By 1940, spurred by the
growing Philippine economy, a sizeable range of Shell products was being sold to more areas in
the Philippines through installations and depots set up in strategic points throughout the country.
In 1960, Shell built its first crude refinery in Tabangao, Batangas, which commenced operations
in 1962. This made Shell a complete downstream business engaged not only in trading, transport
and distribution, but also in the manufacture and refining of petroleum products. The birth of the
refining era was accompanied by further business expansion. Shell pursued interests in the
marketing of chemicals and crop protection products to support the fast growth in the agricultural
sector during the 1960s.
In the late 1970s, Shell began its involvement in upstream activities (oil and gas
exploration and production) to reduce the country's dependence on imported oil. To meet the
rising demand for liquefied petroleum gas (LPG) in Asia, Shell began in the early 1980s the
construction of a refrigerated LPG terminal that would supply domestic LPG needs of the
Philippines and its Asian neighbours. The first of its kind in Asia, Shell's refrigerated LPG
terminal began operations in 1983. In the conduct of its business, Shell has always been
conscious of its obligations to society. In 1982, Shell formed the Pilipinas Shell Foundation, Inc.
to begin its direct participation in social development through industrial and agricultural skills
training, livelihood and entrepreneurship training, promotion of science and technology
education, and other community development programs around Shell work sites.
The foundation has helped make a brighter future for thousands of out-of-school youths,
farmers, students, military dependents and other disadvantaged segments of society. In 1986,
Pilipinas Shell took over majority ownership of Philippine Petroleum Corporation, the country's
only lube oil refinery. In 1990, Shell Philippines Exploration B.V. (SPEX) signed a service
contract with Occidental Philippines Inc. to invest in oil and gas exploration in offshore
Northwest Palawan. Using state-of-the-art technology in one of the deepest waters in the world,
the joint venture discovered significant oil and gas reserves in the Malampaya/Camago field.
Further strengthening its commitment to meet the country's increasing fuel needs, Pilipinas Shell
began in 1993 the construction of a bigger and more modern refinery adjacent to its existing
facility in Tabangao.
Completed in 1995, the 110,000 barrels per day refinery boosted Shell's refining capacity
to 155,000 barrels per day, becoming Pilipinas Shell's share in helping the country move forward
to a better future as envisioned in the government's Philippines 2000 program. The new refinery
enables Pilipinas Shell to produce petroleum products which are more responsive to the needs of
the country and the environment. Its energy-efficient processing facility enables it to produce
more middle distillates to augment the country's diesel fuel requirements. The new refinery is
also capable of producing unleaded gasoline and low sulphur diesel.
This 1998, SPEX begins the development and construction of the Malampaya field for
the commercial production of natural gas in the country by the year 2002. The gas-to-power

project is seen as the largest and most significant investment in the history of Philippine
business, with a total financing requirement of approximately US$2.0 billion.
It is expected to generate a substantial income for the Philippine government over the life
of the field, reduce reliance on imported fuels from 20% to 30%, and provide an alternative
environment-friendly fuel for power generation.
The beginning
In 1833 Marcus Samuel opened a small shop in London, selling sea shells to Victorian
natural history enthusiasts. It soon became a thriving import-export business. On a visit to the
Caspian Sea coast, Marcus's son recognised a huge opportunity to export oil for lamps and
cooking to the Far East. He commissioned the first special oil tanker in 1892, and subsequently
delivered 4,000 tonnes of Russian kerosene to Singapore and Bangkok. Meanwhile, the company
Royal Dutch had been formed in the Netherlands to develop oil fields in Asia. By 1896 it had its
own tanker fleet to compete with the British. In time, it became obvious that the competing
Dutch and British companies would do better working together. In 1907, the Royal Dutch/Shell
Group of companies was created to incorporate their operations worldwide.
Throughout the early twentieth century, the Group expanded with acquisitions in Europe,
Africa and the Americas. These were exciting times for the oil industry, as the mass production
of cars had opened up a vast new market. The First World War years saw many of Shell's
operations closed down or confiscated; but others were added or expanded, particularly in North
America. In 1919, Alcock and Brown made the first non-stop flight across the Atlantic - powered
by Shell fuel. Shell Aviation Services was established that same year. The 1920s and 1930s were
expansion years, with Shell businesses in new regions and new industry sectors; Shell's first
foray into chemicals began in 1929. During the Second World War, Shell once again lost
businesses, tankers and properties, but supported the Allied Governments with fuel supplies and
chemical production.
The post war period
Following the Second World War, an enormous effort began to replace and expand Shell's
facilities for production, transport and refining to meet the new pressures on demand.
Throughout the 1950s and 1960s, Shell's oil output and sales increased dramatically, to the point
where Shell supplied almost one-seventh of the world's oil products. This period was also
important for the development of natural gas as an alternative source of energy. In the 1970s,
Shell made major oil & gas discoveries in the North Sea, just off the coast of Scotland. At the
same time, an economic recession combined with a steep rise in the price of crude oil had a
serious impact on the oil business.
People turned to natural gas. By the end of the decade, gas accounted for about 15% of
Europe's energy consumption, with Shell and its partners supplying about half. Liquefied natural
gas (LNG) - which Shell helped to pioneer - also performed well. Meanwhile, Shell was
developing its long-term interests in coal and metals. In the 1980s, Shell companies installed
advanced technology, launched new products and services, and explored solutions to

environmental concerns. Shell began to sell unleaded petrol, and subsequently gained a
worldwide leadership position. With the 1990s came lower oil prices, and a concentration on
Shell's core businesses - mainly oil, gas and chemicals. By mid-decade, Shell had started to look
ahead to the new millennium and what would be required of energy companies.
As a result, fundamental changes have occurred and continue to be made in the Group.
Sustainable development practices are gradually being integrated throughout the Shell business.
These, and a commitment to people, the planet and profits will help Shell retain a competitive
advantage. Shell has been a successful energy company for over 100 years - and aims to carry on

being a successful energy company well into the next century.

SHELL PRODUCTS

FUEL PRICE
Shell (Increased)
1.40/L VPN+ Racing97, VPN+95, FuelSave91
1.40/L VPN+ Diesel, FS Diesel
CHEVRON CORPORATION

HIGHLIGHTS OF OPERATION
Chevron is one of the largest investors in the Philippines, with more than $2 billion in capital
investments.
We market Caltex fuels, lubricants and other petroleum products. Our network of service
stations, terminals and sales offices forms the backbone of our presence in the Philippines.
Chevrons geothermal operations in the Philippines help make us one of the worlds leading
producers of geothermal energy. Through a joint venture, we operate steam fields that use heat
from the earth to provide power to plants that serve key population centers in the country. Our
innovations have helped make the Philippines the second-largest producer of geothermal energy
in the world, after the United States.
Chevron holds an interest in the Malampaya gas-to-power project, the first natural gas
development and largest industrial project in the Philippines.
From the Philippines, we provide operational support for Chevron offices on five continents. The
workforce supplies transactional, processing and consulting services in areas ranging from
finance to information technology.
Business portfolio
Chevron operates through five subsidiaries in the Philippines. Our upstream companies are
Chevron Malampaya LLC, Chevron Geothermal Services Company and Chevron Kalinga Ltd.
Our downstream company is Chevron Philippines Inc. We also operate a business processes
support organization through Chevron Holdings Inc.
Exploration and Production
The Malampaya gas-to-power project opened the door to the natural gas industry in the
Philippines. The Malampaya natural gas field lies about 50 miles (80 km) northwest of the
Philippine island of Palawan. Chevron holds a 45 percent nonoperated working interest in the
field. In 2015, net daily production averaged 122 million cubic feet of natural gas and 3,000
barrels of condensate.
Produced from fields at water depths of about 2,800 feet (853 m), the gas is transported 314
miles (505 km) through subsea pipelines from an offshore platform to the Batangas onshore
natural gas plant on the main island of Luzon. Once treated, the gas is transported via overland
pipelines to three power plants designed to generate a total of 2,700 megawatts of power. The
Malampaya Phase 2 Project was completed in September 2015. The infill wells and compression
facilities have maintained production and delivered contracted volumes to customers.
Geothermal

Chevron has a 40 percent interest in Philippine Geothermal Production Company, Inc. (PGPC).
PGPC develops and produces steam energy for the third-party-owned and -operated Tiwi and
Mak-Ban geothermal power plants in southern Luzon. They have a combined generating
capacity of 692 megawatts.
Chevron also has an interest in the Kalinga geothermal prospect area in northern Luzon.
Marketing and Retail
Chevron has nearly 700 Caltex service stations in the Philippines. We sell a range of petroleum
products, including Caltex with Techron gasoline, Caltex Diesel with Techron D, kerosene
and jet fuel.
Chevron has 20 supply facilities in the Philippines, including major terminals and depots. Our
import terminal in San Pascual, Batangas, forms the hub of our transportation and supply
operations in the Philippines. Chevron also provides jet fuel for airlines at Ninoy Aquino
International Airport.
Chevron also markets Delo and Havoline lubricants and coolants, along with other
lubricating oils and greases, through distributors to consumer, commercial and industrial
customers.
Operational Support
Chevron Holdings Inc. provides office support for various Chevron companies around the world.
Areas of support include finance and accounting, human resources, information technology,
customer relations, and procurement. The company provides services to Chevron entities in
Africa, the Asia-Pacific region, Australia, Europe and North America.
In the community
Chevron works to improve the social and economic well-being of communities where we
operate. We support programs focused on basic human needs, education and training, business
development, and the environment.
Disaster Relief
Chevrons companies in the Philippines donate funds to various disaster relief efforts in the
country. Our employees and contractors also contribute their own time and money to disaster
relief.
In November 2013, immediately following Typhoon Haiyan, Chevron donated $1.5 million to
the Philippine Red Cross to rehabilitate affected areas. Our subsidiaries, affiliates and employees
in the Philippines made additional donations totaling approximately $70,000.

In 2012, we launched Metro Weather, a public-private partnership that created a network of 30

automated weather station (AWS) units in Metro Manila. They provide free, real-time weather
data to help people prepare for severe weather conditions, such as tropical cyclones and severe
flooding. Chevron provided the financial, technical and infrastructure resources by hosting the
AWS units at select Caltex stations. This pioneering initiative is led by Chevron in partnership
with the Metro Manila Development Authority, the Manila Observatory, Globe Telecom and
Ateneo de Manila University.
Education and Training
At Chevron, we believe that education is an important factor in the economic growth and wellbeing of the communities where we operate.
Energy for Learning is a long-term initiative by Chevron and our Caltex retail brand that
aims to expose people to new information, new skills and different ways of thinking. In
partnership with local communities, governments and nonprofit groups, Chevron provides school
supplies and refurbishes libraries and other school facilities.
The Caltex Fuel Your School program was launched in the Philippines in 2015. The program was
honored with awards from the American Chamber Foundation of the Philippines and from the
Public Relations Society of the Philippines. An estimated 600 teachers, 3,000 10th-grade
students and 102,200 students from succeeding levels in Metro Manilas highest-need public
schools have benefited from the program. Other educational programs we support include:

Scholarships for 700 gifted high school and college students in need

The Malampaya Foundation Inc., which provides 70 college scholarships and 950
vocational scholarships

The Brigada Eskwela (School Brigade), a repair and cleaning program of the Department
of Education that serves various public schools in the Philippines

Caltex also partners with various nonprofit groups to create skills training programs that offer job
placement to trainees within six months to one year after they earn their certification. We work
with the Don Bosco Pugad Foundation, which started the Manna From Heaven training bakery
and bakeshop program, as well as its spinoff project, the Coffee & Saints Caf, which teaches
boys culinary and restaurant management skills. Our latest partnership resulted in the CaltexPugad Mobile Mechanics, a service that brings skilled mechanics right to customers.

Economic Development

In the Philippines, Chevron supports programs that assist small businesses and offer training in
agriculture, fisheries and home industries.
In Kalinga Province, Chevron partnered with Kalinga Apayao State College to train members of
the community and help provide access to markets for local products such as coffee, macadamia
nuts, unoy (red rice), oranges and traditional crafts. Through the United People of Kalinga
Enterprise Enhancement Program, we work with our partners to promote indigenous knowledge
through sustainable enterprise development.
Caring for the Environment
In January 2014, Chevron employees witnessed the results of their environmental stewardship
when 69 olive ridley sea turtle eggs hatched on a beach adjacent to Chevrons Batangas
Terminal. More than 600 employees, Caltex retailers, business partners, teachers and students
cleaned the beach of trash and debris, which revealed a nest containing 110 turtle eggs. We
worked closely with the Department of Environment and Natural Resources and wildlife experts
to move the nest to drier ground, where the turtles hatched, then made their way to the sea.
Chevron has since created a sea turtle encounter training program for employees, contractors and
visitors.
Chevron is collaborating with the Cabiokid Foundation, Inc., the Tiwi local government and the
Department of Education to establish a model farm to train teachers, students and parents in
sustainable agricultural technologies.
We support the Malampaya Foundation Inc., which helped local communities implement
effective coastal resource management plans. In 2014, 17 conservation agreements were signed
throughout the provinces of Palawan and Oriental Mindoro.
Record of achievement
For nearly a century, Chevrons investments and operations in the Philippines have made
important contributions to developing the countrys energy and petroleum industry.
Some of our pioneering achievements include:

First American oil marketer, in 1917

First geothermal developer in partnership with the Philippine government, in 1971

First multinational regional-business-operations support office recognized by the

Philippine government, in 1998

Among the first natural gas developers as part of the Malampaya Deepwater Gas to
Power Project Consortium, in 1999

Chevron started working in the Philippines in 1917, when The Texas Co.later Texacobegan
marketing its products through a local distributor. Texaco Philippines was formally established in
1921 and opened an office in Manila.
In 1936, a joint venture between The Texas Co. and Chevron predecessor Standard Oil Co. of
California created Caltex, which then took over marketing operations in the Philippines.
Eleven years later, Caltex converted its Pandacan warehouse depot in Manila into its first
distribution terminal in the Philippines.
In 1954, Caltex inaugurated the Batangas Refinery at San Pascual, the first petroleum refinery in
the Philippines. In 2003, this refinery was converted into a finished-import terminal, with a
storage capacity of at least 2.5 million barrels.
In 1971, Chevron Geothermal Philippines Holdings, Inc., partnered with the Philippine
government to pioneer the commercial development of geothermal resources in the Philippines.
Chevron established Chevron Holdings Inc. in 1998.
In 2001, Chevron Malampaya LLC, together with the other members of the project consortium,
delivered the countrys first commercial gas supplies to two power generation plants. With a total
capacity of 2,200 megawatts, the supply meets approximately 30 percent of the countrys power
needs. Another 500-megawatt gas power plant came on line in 2002.
Economy
The Malampaya deepwater gas-to-power project is a significant source of revenue for the
Philippines. It supports the governments economic development programs and provides a
reliable source of energy on the main island of Luzon.
Chevrons natural gas and geothermal projects reduce the countrys dependence on imported fuel
through the use of clean, indigenous and reliable energy. These projects combined capacity of
more than 3,300 megawatts supplies approximately 40 percent of Luzons power needs.
CHEVRON PRODUCTS
What's the Power of Techron?
Protect your performance
Chevron fuel contains Techron, a unique additive designed to protect your engine from harmful
deposit buildup that can interfere with your car's performance. Keeping an engine clean with
Techron maximizes mileage and helps prevent loss of power.
Clean us from the inside

Techron uses a polyether amine (PEA)-based chemistry that's unbeatable at cleaning and
protecting your engine. So you can keep your car as clean on the inside as it is on the outside.
Cleaner air
Intake valve deposits from low quality gasoline and any fuel injector deposits can increase
tailpipe emissions. Keeping your engine clean with Techron helps to lower these emissions.
Techron Power in Three Distinct Grades
Chevron Regular
Recommended for most gasoline-powered passenger cars and trucks.
Chevron Plus
Recommended for higher-performance cars and engines prone to knocking on lower octane
levels.
Chevron Supreme
Recommended for cars where the manufacturer recommends use of premium grade gasoline.
Other
Ultra-Low Sulfur Diesel
Chevron's ULSD (Ultra Low Sulfur Diesel) helps reduce particulate emissions over traditional
forms of diesel and is approved for use on all next generation ultra clean diesel engines as it
enables the use of sophisticated exhaust systems in your vehicle. It also meets or exceeds all
applicable federal and state requirements.
FUEL PRICE
Chevron (INCREASED)
Platinum95 1.40/L
Silver91
1.40/L Diesel

REFERENCES:
http://www.shell.com.ph/aboutshell/who-we-are/history/country.html
http://www.petron.com/web/
http://www.chevron.com
http://www.philstar.com/business/2016/08/10/1611773/market-share-top-3-oil-firm-shrink-past5-years
http://formulastudent.imeche.org/docs/default-source/default-document-library/shell-v-powerproduct-information.pdf?sfvrsn=0
https://www.chevron.com/worldwide/philippines
http://www.chevronwithtechron.com/products.aspx
http://www.philstar.com/headlines/2016/04/26/1576861/diesel-prices-gas-down-today
http://www.twitter.com/Petrol_Price