BUSINESSMAN Ramon Ang said last week that he intends to take Philippine National Oil Co. (PNOC) to an international arbitration court should the ongoing legal tussle between Petron Corp. and the state firm not be resolved.
“If I win here, then it’s over, but if not, then I will go to an international arbitration court,” said Ang when asked for an update on an ongoing case filed with the Mandaluyong Regional Trial Court.
Petron awaits the local court’s decision on a petition for the issuance of a temporary restraining order (TRO) against PNOC to stop it from performing acts aimed at ousting Petron of its leased properties.
“I will wait for the decision of the Philippine court first. Once a TRO is issued, it’s automatic lease renewal forever,” Ang said.
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, which supplies more than a third of the country’s petroleum requirements, has repeatedly told PNOC the lease agreements for the properties and the renewal clauses therein are valid and binding.
Petron’s lease with PNOC provides for an “automatic renewal” of the contract with the state firm. The contracts will expire in August. There is a provision for renegotiation in the contract that in case of failure to come to an agreement, the same terms and conditions shall apply.
However, PNOC claims these conditions are disadvantageous to the government. Petron then offered to negotiate the agreement with PNOC as early as 2016. However, it was constrained to seek judicial intervention when PNOC President Rueben Lista threatened to terminate the lease agreement with Petron, citing provisions in the contract that are allegedly “onerous, burdensome and disadvantageous” to the government.