Petron wins lease dispute against state-run PNOC

Oil firm Petron Corp. said Thursday the Supreme Court has denied a second motion for reconsideration filed by state-run Philippine National Oil Co. (PNOC) on their lease agreement dispute.

Petron said in a disclosure to the Philippine Stock Exchange it had received a resolution from the Supreme Court, dated July 2, 2025, denying the motion. The court’s decision was made in view of an entry of judgment issued on Nov. 25, 2024.

“The Supreme Court reiterated its directive in its resolution dated Nov. 25, 2024 that no further pleadings or motions will be entertained,” Petron said.

The November 2024 resolution had denied with finality a previous motion for reconsideration and a motion to refer the case to the court en banc, both filed by PNOC. These motions were related to a complaint filed by Petron in October 2017, which sought the reconveyance of various landholdings it had transferred to PNOC in 1993.

The November 2024 resolution affirmed the Supreme Court’s July 25, 2023 resolution, which denied a petition for review on certiorari filed by PNOC.

That petition had challenged a Court of Appeals decision that, in turn, affirmed a trial court ruling to rescind the deeds of conveyance for the property transfers and order the reconveyance of the properties to Petron.

The November 2024 resolution also ordered the immediate issuance of an entry of judgment, stating that no further pleadings or motions would be entertained.

Petron has lease agreements with PNOC for its Bataan oil refinery, 24 bulk plants and 67 gasoline stations.

In 2017, Petron filed a case against PNOC, alleging a breach of a “sale-leaseback” contract that threatened its operations. Petron said that PNOC wanted to remove the automatic renewable clause in the contract to be able to offer the sites to other oil companies.

Petron said it originally owned the leased properties, having acquired them over many years for its refinery, distribution, and sales operations. The company was compelled to transfer ownership to PNOC in 1993 to comply with the requirements of its privatization.

The transfer of the properties was facilitated through a deed of conveyance and lease agreements that guaranteed Petron’s long-term and continuous use of the sites. According to Petron, this arrangement was intended to secure foreign and local investments and ensure the stability of its operations.

The company said a principal consideration for the conveyance of its properties to PNOC was PNOC’s obligation to lease the same properties back to Petron.