Firm to build oil depot in Mindanao

[ Manila Bulletin Online ] July 26, 2008
By Bernie Cahiles-Magkilat

Filipino-owned Insular Oil Corp. is investing P400 million to put up a new petroleum product storage and blending depot facility to supply Southern Mindanao area.

The Board of Investments has already approved and granted incentives to the project, which will be located in a 45,305 square meter lot in Davao City with 225-meter foreshore line facing the Davao Gulf.

Insular Oil has acquired this property from Herma Corp. in July last year.

The company’s activities include storage, distribution and marketing of petroleum products.

The company has already started operations in June this year and is expected to employ 25 people upon full commercial operations.

The oil distribution and depot facility activity is listed in the 2007 Investment Priorities Plan under Mandatory Inclusions in view of Republic Act 8479 otherwise known as the Downstream Oil Industry Deregulation Act.

With the evolution of southern Philippines as a feasible industrial cluster, the BOI favors investments in support industries there.

Under the law, new investments as determined by the Department of Energy and registered with the BOI in refining, storage, marketing and distribution of petroleum products, shall be extended the same incentives granted to BOI-registered enterprises engaged in a preferred area of investments pursuant to "Executive Order No. 226," otherwise known as the "Omnibus Investments Code of 1987."

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