The Authority of the Freeport Area of Bataan (AFAB) has approved the registration of Petron Corporation (Petron) as a FAB Registered Enterprise (FRE) located inside the Petron Bataan Refinery (PBR) Complex which was declared as the 12th FAB Expansion Area (FEA).
Petron is a 238-hectare integrated crude oil refinery and petrochemical complex engaged in processing a full range of petroleum products including gasoline, diesel, LPG, jet fuel, kerosene and petrochemicals located in Barangay Lamao, Limay, Bataan.
Last October 2020, Petron President Ramon Ang warned that Petron’s Bataan refinery would shutdown “very soon,” unless government would provide a level-playing field for oil importers and refiners. “If the situation does not change, we will also not last.”
The current tax regime, he stressed, is weighing heavily on Petron’s finances. The company suffered a whopping P14.2-billion net loss in the first half, from a net income of P2.6 billion in the same period last year.
With the endorsement of Limay LGU, “to help ensure the continued economic development and promote a reinvigorated investment environment in the Municipality of Limay and the whole Province of Bataan” and with the PBR committing to make an additional investment of Php3 billion within five years, this major step can create more jobs for the constituents of Limay and nearby municipalities.
The AFAB Board duly recognized the merits of the application. With this registration, the AFAB official statement said, the PBR would be more competitive and in a better position to sustain its operation to supply fuel for the nation.
Paying billions of taxes and spending over Php500 million for its Corporate Social
Responsibility (CSR) programs are among Petron’s major contributions to nation building and Bataan’s economic growth.
Pursuant to Section 2 of Republic Act 11453 or “An Act Further Strengthening the Powers and Functions of the Authority of the Freeport Area of Bataan (AFAB)”, the AFAB, with the
concurrence of the local government unit (LGU) and the approval of the AFAB Board in accordance with existing laws and local ordinances, has the power to establish special economic zones within the province of Bataan.