The Philippine Institute of Petroleum

The National Association of Oil Companies

1. Why the PIP?

• With the passage of Republic Act 8479 (An Act Deregulating the Downstream Oil Industry), the Government’s role has shifted to ensuring fair competition and monitoring & enforcing compliance with Health, Safety, Environment & Quality (HSEQ) Standards. The removal of entry restrictions and the lifting of price controls is also expected to attract new companies to engage in the oil business.

With the growth of competition and a reduction in the focus of Government to a few key areas of activity, it is expected that the oil industry will have to shoulder most of the responsibility for "policing" its own ranks, as well as assisting Government and other sectors in the gathering and processing of information on the oil industry. This responsibility derives from the provisions of Sec. 8, 19 and 20 of RA8180*.

• The oil industry also has a role to play in the drive to encourage investments and in the search for new technologies and processes. Central to this effort is a forum where information on the oil industry is gathered, processed and regularly updated for the use of the various concerned publics.

* Replaced byR.A. 8479 Feb. 1998.

2. What is PIP?

A non-stock, non profit SEC registered grouping of businesses operating in the downstream oil industry in the Philippines. It is an independent body representing the common interests of its members with different publics.

Members of the PIP include: - Petron Corporation - Pilipinas Shell Petroleum Corporation - Chevron Philippines Inc. - Total (Philippines) Corporation - PTT Philippines Corporation - LiquiGaz (Philippines)

Individual members include distinguished names from the business sector, organizations and academe.

3. What is the role of PIP?

Principal roles of the PIP include:

• Creating a venue/forum for the sharing, preservation and refinement of best practices in the field of HSEQ;

• Acting as an industry oversight group for concerns in the areas of product quality standards, transport and handling practices, and compliance with relevant Government regulations;

• Providing a central data source and research base that will assist interested investors, researchers and other parties in understanding the industry;

• Keeping pace with developments abroad by establishing working linkages with counterpart institutes; and

• Assisting Government in policy planning for the downstream oil sector and acting as an advocate for the development and establishment of such policies.

• Such a forum also serves as the industry's spokesman vis-a-vis the various sectors it serves: i.e. customers, government entities and the public in general. It provides a venue for interested parties to come together for open discussions with the goal of arriving at a shared understanding of issues on an industry-wide basis.

4. How does one qualify as a PIP member?

Any company engaged in the downstream oil business [as defined in Sec.4 paragraph (a) of RA 8180*] is qualified for membership. Types of memberships are Regular, Associate, Individual and Institutional.