The engagement of a Filipino partner is a legal requirement under President Decree 1442 or the Geothermal Law so Chevron can negotiate with the Philippine government, through the Department of Energy (DOE), for a geothermal operating contract or GOC.
“Filipinization” for the American firm entails tapping a Filipino partner so it can comply with the Philippine Constitution’s prescription of 60-percent domestic equity ownership for entities engaged in the exploration and exploitation of indigenous and renewable energy resources such as geothermal steam.
In PGPCI, Chevron will hold the minority shareholdings of 40-percent, but its technical expertise in geothermal steam exploration and development will be the new corporate vehicle’s lifeblood.
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