shell world

SHELL
WORLD
PHILIPPINES
ISSUE 3 2008
05 Paradise Maintained: Selling Fuel on Boracay Island
06 Finding that Magic Recipe: Developing New and Innovative Fuels
14 CO2: From Threat to Opportunity
16 Energy Technology Revolution
26 Sustainable Development in Action
Beyond
Performance
Shell Fuel Economy Formula takes you even further
page 20
SHELL
WORLD
PHILIPPINES
24
DOWNSTREAM-ONE
Organisation Design Lead for the Philippines Alex
Merano is at the forefront of shaping the country’s
future Downstream structure
Editorial Advisors
Roberto S. Kanapi
Mylene M. Santos
Editor-in-Chief
Sankie G. Simbulan
Managing Editors
Jun Jay G. Jimenez
Jocelyn Diana-Diga
Writers
Jun Jay G. Jimenez
Jocelyn Diana-Diga
Contributors
Roger C. Borromeo
Mich Cruz
Tet Defensor
Clara Antonette Eser
Daphne T. Eustaquio
Nats Frialde
D&I Network Council Philippines
Dianne Gelbolingo
Ryan Lao
Lito Lazaro
Reggie Lejano
Jigs Macatangay
Noel Mendoza
Magi Nicolas
Jose Paulo Ore II
John Mark Pallugna
Atty. Raul Quiroz
Margaux Diaz-Sanguyo
Mylene Santos
Ronald Suarez
Bernadette Villanueva
CONTENTS
ISSUE 3 2008
05
PARADISE MAINTAINED: SELLING
FUEL ON BORACAY ISLAND
Shell’s new retail site in Boracay helps protect the
island’s fragile ecosystem and improves the lives
of motorists
06
FINDING THAT MAGIC RECIPE:
DEVELOPING NEW AND INNOVATIVE
FUELS
Shell’s fuel technicians share the challenges and
breakthroughs of developing reliable gasoline and
diesel that bring customers extra benefits
08
PLAIN TALK ON THE OIL PRICE
Why does fuel cost much and what is Shell doing
to help meet the energy challenge? Get to know
the inside story
Cover Photo
Walter Villa
To contact the SWP Team:
Mailing Address
Shell World Philippines
14/F Shell House
156 Valero St., Salcedo Village
Makati City 1227
E-Mail
[email protected]
Website
www.shell.com.ph
Shell World Philippines is published quarterly for the employees of the
Shell companies in the Philippines and for interested readers outside the
business. Opinions expressed do not necessarily reflect the official views
of any Shell company.
The following expressions are inherent to Shell businesses in the
Philippines: SciP (Shell companies in the Philippines), which encompasses
its companies in the country; and Pilipinas Shell (Pilipinas Shell Petroleum
Corporation). The specific names of other Shell companies will be duly
mentioned in the article.
Shell World Philippines is published by the Communications Department for
the Shell companies in the Philippines.
2 SHELL WORLD PHILIPPINES
BEYOND
PERFORMANCE
Shell Fuel Economy
Formula takes you
even further
10, 34
COUNTRY ROUND-UP
The different business and social development
activities of Shell in the Philippines that support
the country’s quest for progress and development
14
CO2: FROM THREAT
TO OPPORTUNITY
Meeting the energy challenge by introducing
Shell’s journey with motorists is all more energy-efficient and low carbon dioxide
about creating awareness on fuel
products for motorists around the world
efficiency through the application
of fuel-efficient driving practices
16
and the use of more economical
ENERGY TECHNOLOGY REVOLUTION
fuel formulations.
A self-confessed technology optimist and his quest
for ways to expand Shell’s energy-based horizons
within the confines of a world with finite resources
20
18
EVERYBODY LOVES KEITH
Shell Philippines Exploration B.V. (SPEX) Asset
Manager Keith Perrin recounts the memorable details
of his Shell career and the joys of working with the
SPEX team as he prepares to relinquish his post
26
SD IN ACTION: MAKING GOOD
BUSINESS
Former Sustainable Development (SD) Manager
Mylene Santos talks about what SD means for Shell
and her fulfilling experience of sharing this SD
commitment with others
28
PATHS TO DEVELOPMENT: PAVING
THE WAY FOR BICOLANOS
Pilipinas Shell Petroleum Corporation and the
local government units of Pasacao in Bicol
establish a social development programme to help
empower Bicolanos
Welcome
Dear Colleagues,
Energy moves our world. It powers our
homes,
vehicles,
equipment
and
industries. Without it, everything would
be at a stand still.
Rapid development has seen the global
demand for energy increasing each year.
Extracting energy, however, has become
more challenging, requiring large
investments and sophisticated technology
to reach energy sources locked in hard
to reach places or in difficult
environments. And while the world
consumes more and more energy, carbon
dioxide emissions from energy grow at
an even higher rate, contributing a great deal to climate change that is now
hurting our environment.
Responsible Energy. This is Shell’s response to the energy challenge. Even more, it is
Shell’s resolute commitment to contribute to sustainable development.
For over a hundred years now, Shell has been working to secure a responsible
energy future by helping meet the world’s growing energy demand in economically,
environmentally and socially responsible ways.
30
30
SANSO’ TELLS VISAYAS ART
STUDENTS: “DARE!”
Master painter Juvenal Sanso inspires art
students in the Visayas
The stories in this third issue of Shell World Philippines are all manifestations of
this commitment to responsible energy. A commitment to find real energy
solutions through persistence, optimism and innovative thinking to keep our
world moving today and beyond.
Sankie G. Simbulan
Business and Corporate Communications Manager
32
LEGAL SPEAK: PURCHASING REAL
PROPERTY IN THE PHILIPPINES
A guide to real property acquisition in the Philippines
Know more about Shell’s
commitment to
Sustainable Development,
read Responsible Energy,
the first Shell companies
in the Philippines
Sustainability Report in
www.shell.com.ph.
37
MELODIES OF NATURE: PALAWEÑOS
SING FOR THE ENVIRONMENT
Shell Philippines Exploration supports
Palaweños in preserving the environment
through the gift of music
38
DIVERSITY & INCLUSION:
IN GOOD COMPANY
Taking the D&I celebration a step higher with
activities that bind Shell staff together
Shell companies in the Philippines
Sustainability Report 2007
SHELL WORLD PHILIPPINES 3
YOUR MAGAZINE
YOUR
LETTERS
Dear Editor,
the cover of
red Service Center-Manila on
Sha
ll
She
ing
tur
fea
for
you
Thank
for 3 ½ years
issue. I’ve been with the centre anisation.
Shell World Philippines’ 2nd
org
t I am a part of a world-class
the country
and it makes me feel proud tha
in
sses
and gave other Shell busine
mber of the
The article was well-written
me
new
s
thi
the article; we’re like
some of the
would get to know us through
ing
tur
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ne.
ryo
get to know eve
ication for
family who’s excited to meet and
ded
e it highlighted our passion and
the sociostaff was also inspiring becaus
on
ion
t part where our participat
ing GK
Join
work. I especially enjoyed tha
d.
one
nti
me
Pilipinas Shell were
coming
I’m
civic activities spearheaded by
if
d
min
’t
don
I
and
different high
house build events gives me a
ces are all worth it!
from the night shift. The sacrifi
ll World Philippines!
Thank you and more power She
Mary Camille S. Arcon
Stock Accounting Analyst
Shell Chemicals LP
anila
Shell Shared Service Centre-M
FEATURE
Dear Ms. Mylene Santos and Ms. Sankie
Simbulan:
Thank you very much for sending me the
final issue of Shell Balita and the
maiden issue of Shell World Philippines. Th
ey came as a very pleasant surprise
because for some years now, I have not been
getting Shell Balita. I hope that
you will send me regularly hereon copies of
Shell World Philippines and other
publications of interest to people like me who
want to know what is happening
to and in the company.
I have a very strong reason to be interested
in Shell affairs. I was a Shell
employee for almost 42 years (February 195
5 to November 1996). I joined
Shell as an out-of-school youth with only a
year and a half of college education
at age 18 (I did go on to complete my
accounting course – with Shell’s
assistance), retired in May 1996 at the man
datory age of 60 and was retained
as consultant for another six months. The man
agement training and exposure
Shell gave me through the years developed
me not only for my work in the
company but also for the opportunities and
challenges beyond. When I left
the company in November 1996, Mr. Cesa
r Buenaventura, the first Filipino
president of the Shell companies in the Phil
ippines
for 14 years, invited me to join the managem and who held that position
ent of AG&P, of which he was
then president. He had always said that there
was life after Shell, and I saw
proof of that in the eight and a half enjoyabl
e years I spent in AG&P.
Now 72, I am retired but not inactive. I
am an active member of the Shell
Club15Plus. I am involved as a volunteer
with a number of non-government
agencies. It is with much regret that since
November last year, my mobility
has been severely restricted by surgery and
subsequent chemotherapy for
spleen cancer. By God’s mercy and good
ness and through the prayers of
countless families and friends, my doctors
are optimistic that I will be fully
healed in at most a couple of months. I will
then go back to active circulation.
Indeed, there is life after Shell for those
who seize opportunities and are
willing to give of themselves for a life of servi
ce to others.
Gratefully yours,
SELLING FUEL ON BORACAY ISLAND
Island photo by Bobby Timonera
the forecourt in the same condition they
departed in. “Fuel is now cleaner than fuel
previously sold on the island because once it’s
loaded into the fuel tanker on the mainland, it’s
taken directly onto a roll-on, roll-off vessel,” says
Sammy de Guzman, former General ManagerRetail Philippines and North Pacific Cluster for
Shell. “The fuel isn’t unloaded until it’s delivered
directly into the three underground tanks at the
service station.”
In the past, the fuel was brought to the island
in drums or plastic containers which were
prone to becoming contaminated with
saltwater during transport.
A
Noel Ison, Sr.
Dear Editor,
I am part of the Stream
line
part of this team expose B2B Lubes & LSC communications team. Be
ing
s me to all the necessary
work
prepare the business for
GSAP. With all the upcom that needs to be done to
need to be communicate
ing changes & policies tha
d and processes that ne
t
ed to be implemented,
really say that this journ
I can
ey is one rollercoaster rid
e. It’s a good thing we ha
the Shell World Phili
ppines magazine that
ve
features the milestones
achievements that ha
and
ppen along the way.
Learn
information inspires peo
ple like me to believe tha ing such news and
GSAP is challenging, it
t
is possible. We’re only ha although the journey to
lfway through the journ
but learning that we are
ey,
alr
worthwhile. Kudos to you eady accomplishing big things makes the journ
ey
and the Downstream-O
ne team!
Joseph Wilbert Gatch
alian
Training Focal Point
Streamline B2B/Lube
s/LSC Implementation
Team-Philippines
PARADISE
MAINTAINED:
SHARE YOUR STORIES
The new Shell World Philippines (SWP) is in line with
other Shell World publications around the world,
bringing news and feature stories with both global and
local content. The SWP Team invites you to share your
stories with the rest of the Shell community. You may
send your stories, along with photos and your contact
details, to anyone from the SWP Team. Please see the
staffbox for out contact details.
WRITE US LETTERS
We are interested to know your thoughts on
anything about the Shell business or your
feedback on the magazine. Letters chosen will be
published in our next issue and senders will be
given a token from SWP. We reserve the right to
edit your letter for clarity and brevity.
s a test of Shell’s commitment to
safety and the environment, few
locations have posed a greater
challenge than Boracay Island in
the Philippines. With its fragile
ecosystem, Boracay presented Shell with a
major Health, Safety, Security &
Environment (HSSE) test when the company
opened its first retail site on the island last
November – but it’s a test that Shell has
passed with flying colours.
Boracay, a beautiful tropical island located over
300 kilometres south of the Philippines capital
Manila, is one of the country’s most popular
tourist destinations. Retail customers on the
island are largely hotels and restaurants that use
fuel for their service vehicles and generators. The
other main customers are local owners of the
island’s key transport vehicles, motorised tricycles
and taxis serving tourists.
Thanks to a joint effort between the Retail Sales
and Operations and the Marketing and Network
Group, fuel is now supplied to these customers
via a Shell Retail site in a way that’s not only far
more reliable than before, but is also safer and
more environmentally friendly.
Shell has also overhauled the island’s fuel
distribution system to ensure fuels arrive at
4 SHELL WORLD PHILIPPINES
Preventing spills
Shell has also helped to prevent the fuel spills
and leaks that were a feature of the island’s
previous retail processes by introducing
calibrated petrol pumps on the forecourt –
nothing new for Shell, but a big step forward
for Boracay. Dispensing fuel has become safer
and more precise through the use of the
pumps. These replaced the manual system
previously used which saw fuel poured from
soft drink bottles. “Customers have warmly
welcomed getting the right quantity of fuel
each time they fill up,” says Sammy.
The new retail site has also been fitted with a
continuous monitoring system that detects
leaks within the walls of the retail station.
The site’s overflow prevention system
automatically closes the tanks at a certain
level to maintain optimum safety when the
tanks are being refilled.
formulated to reduce harmful emissions, are
playing a crucial role in helping preserve air
quality.
Skilled workforce
The efficient and eco-friendly fuel management
systems introduced on the island wouldn’t
work without the support of retail site staff,
which includes seven forecourt crew members,
three cashiers, one junior accountant and a
driver, all trained to Shell standards of customer
service and HSSE.
The introduction of new facilities and vehicles
to improve the supply of fuels has required
government help, too. “When it comes to
using transport such as the roll-on, roll-off
vessel for fuel distribution, there needs to be
support and cooperation with the local
government and related agencies to ensure
success,” emphasises Sammy.
Shell’s approach to fuels retailing on the island
has certainly met with the approval of Boracay’s
residents. “Local reaction to the retail site has
been very positive, as customers can see that
they’re getting cleaner and cheaper fuels in the
right quantity,” says Sammy.
Shell has demonstrated to the residents of
Boracay that it can supply fuels in a cleaner and
more efficient way than they previously
experienced – and at the same time has proved
that a major oil company and a fragile ecosystem
can co-exist in perfect harmony. SWP
The site is equipped with double-walled fibre
glass tanks and pipelines, too. These not only
protect the local environment but increase the
lifespan of the site’s facilities. “This green fuel
system uses corrosion-resistant materials for the
storage tanks and the supply line and this prevents
underground leakages,” explains Sammy.
Shell is also helping to protect Boracay’s fragile
ecosystem through its advanced oil products.
With motorcycles being the island’s main form
of transport, Shell’s motorcycle lubricants,
Source: Katie Deeble - Downstream Internal Communications Manager
SHELL WORLD PHILIPPINES 5
FEATURE
FINDING THAT
MAGIC RECIPE:
DEVELOPING NEW
AND INNOVATIVE FUELS
Developing reliable gasoline and diesel for engines that run thousands of miles every
year is difficult enough. Throw in extreme temperatures, changing government regulations
and stiff competition, and you’ll begin to understand the
challenges faced by Shell’s fuel technicians.
S
omeone who knows them only too well is Chris Spink,
Principal Scientist at the Shell Thornton Research
and Technology Centre and Project Leader for the
main grade gasoline development programme.
“I’m responsible for developing fuels that are both fit for purpose and
offer the customer extra benefits,” says Chris. “The latter are often
provided through the use of additives. These are special chemicals
added to the gasoline coming out of the refinery at a treat rate of
about one part in a thousand. My team investigates how changing
the additive ‘recipe’ could improve a product.”
It’s not easy. To begin with, Chris and his colleagues must
keep up with ever-changing fuel regulations at both a
national and international level.
“These set acceptable levels for certain fuel ingredients,” says Chris.
“For instance sulphur, which produces harmful emissions, is
gradually being brought down to a few parts per million in many
markets around the world. Conversely, Octane quality, which aids
power and acceleration, must be provided at a minimum level. But
of course we never do the bare minimum at Shell.”
Giving fuels the right recipe means negotiating with refineries, which
are charged to get the most out of a barrel of oil. “We have to work
within their limits and remember they have other customers to
please,” says Chris.
Getting fuels on to the road also means dealing with issues such as
temperature extremes faced by customers in different parts of the
world. In Scandinavia, the biting cold can cause crystals to form in
diesel fuels, while gasoline degrades faster in hot climates.
“We use additives to alter the properties of a fuel but these can have
side-effects,” warned Chris. “For example, while detergents keep
engines clean they must be carefully selected to avoid leaving behind
damaging residues.”
Aside from the technical challenges, there is the added difficulty of
making sure fuel researchers and marketing teams are heading in
the same direction. Clive McDonald, Main Grade Gasoline
Technology Manager at Shell, operates in what he calls the ‘cyber
space’ between these teams.
6
6 SHELL
SHELL WORLD
WORLD PHILIPPINES
PHILIPPINES
Giving fuels the right recipe means
negotiating with refineries, which are
charged to get the most out of a barrel of oil.”
“My role is to take a marketing brief and translate it into
something our researchers can actually make,” says Clive.
“These researchers will often want a two, three or four year
delivery date, while the marketing team will expect something
in six months. Often when you take on a job you don’t have a
clue how to deliver but non-delivery is not an option.”
Despite this, Chris and his colleagues are proud of what
they’ve accomplished with Shell’s differentiated range of fuels.
And the popularity of these fuels in the market shows that
customers feel the difference.
“We’re rigorous in making sure our fuels do what they say,”
says Nick Davenport, Diesel Fuel Technology Manager at
Shell. “We test every claim and customers can be sure of what
they’re buying.”
Clive McDonald, Main Grade Gasoline Technology Manager
at Shell, didn’t fall into Shell by accident. “My previous job
was in overseas development but I came to the conclusion that
I could achieve more within a right-minded multinational,”
said Clive.
“I looked around and found that Shell fitted the bill
perfectly.
“After more than 15 years of pure and applied research, I
happened, one fine day, to be in the right place at the right
time to become involved in developing and implementing
fuels. What makes it all worthwhile is seeing forecourt
paraphernalia announcing a brand new fuel, one you yourself
have crafted.” SWP
DID YOU KNOW …
• With 46,000 petrol stations across more than
90 countries, Shell has the world’s largest
single-branded fuel retail network.
• Every day, Shell sells 350 million litres of fuel – enough
to fill up over 6 million Ford Focus cars. SWP
Source: Global Downstream Communications, Katie Deeble & Nadia Martens
SHELL WORLD PHILIPPINES 7
FEATURE
PLAIN TALK
ON THE OIL PRICE
We are introducing new fuel economy formulas and
offer advice on fuel-efficient driving that help
customers get more miles from each gallon or litre.”
View of petrol
pumps at a Shell
retail site in
Istanbul, Turkey
A Shell GTL audi car at a retail site
in London, UK.
F
Researchers conduct tests during
biofuels experimentation at the research
centre in Amsterdam, Netherlands.
uel prices are the highest they’ve ever been. We know that’s hurting. We hear this every
day from our customers, our employees and their families. Why does fuel cost this much,
and what are we doing to help?
The main reason is that demand is growing faster than supply. Rapid economic growth
in Asia has virtually exhausted the world’s surplus production capacity. So prices have risen steeply
for many commodities, including crude oil.
There is little that Shell can do about this. Although we are one of the largest of the world’s 3,500
oil companies, we produce only around 2.5% of the world’s crude oil. To supply the 46,000 Shell
branded petrol stations worldwide, we have to buy over half of our raw gasoline and diesel from
the open market. Just like our customers, we’re exposed to daily price fluctuations.
Fierce competition makes fuel retailing a high-volume, low-margin business. Most of our profit
comes from production of oil and natural gas.
First CNG
station
located in
Laguna,
south of
Metro Manila.
A large slice of the cost of a barrel goes to the countries where the oil is taken out of the ground as
royalties and taxes. Most governments also apply tax when it is bought at the pump -- in some
European countries, this can represent as much as 50% or more of the price drivers pay.
Passengers disembarking from a GTL bus in Shanghai, China.
1. Drive smoothly, avoiding heavy acceleration or braking.
Of course, as the price of a barrel goes up, we make more money. And as one of the world’s largest
companies, our profits are large. So, what are we doing with that money?
We’re using it to fund the largest investment programme in our history and in our industry to
boost supply and find new alternatives to oil. Demand will continue to grow, so lower prices
depend on more supply and more choice in fuels.
In 2007, our capital investment increased to $27.1 billion and we expect it to grow again this year
to about $35-$36 billion. The number of projects we have under construction has more than
doubled since 2004 and we have over 50 large oil and gas projects underway, as well as many more
smaller ones. Many of these are in increasingly difficult and costly locations like the Arctic and in
deep offshore waters where the technical challenges are immense.
We’ve stepped up our investment into transport biofuels, particularly those using more sustainable
advanced technologies. And we are producing liquid fuels from natural gas and unconventional
sources like Canada’s oil sands.
We are introducing new fuel economy formulas and offer advice on fuel-efficient driving that
help customers get more miles from each gallon or litre. Our work with vehicle manufacturers
supports the introduction of more efficient engines. And we are investing in renewable energy
sources like wind power.
WHAT CAN DRIVERS DO
TO SAVE MONEY ON
GASOLINE? THE WAY
YOU DRIVE AND THE WAY
YOU MAINTAIN YOUR
VEHICLE CAN HELP
REDUCE YOUR FUEL
CONSUMPTION AND
SAVE YOU MONEY. HERE
ARE SOME TIPS:
Our profits are big, but so is the challenge ahead. We are investing massively now to help meet
that challenge. It will take time before the full effect of these investments is felt, but in an industry
that thinks in decades, they are essential to ensure
we can help supply the fuel consumers will need for
years to come. SWP
The Blyth Wind Project turbines located in the North Sea.
8 SHELL WORLD PHILIPPINES
Learn more at www.shell.com
FuelSave Tips:
2. Manual cars -- change up to a higher gear as early as possible
as you accelerate.
3. Automatic cars -- shift up gears more quickly if you ease back on
the accelerator once the car gathers momentum.
4. Keep your engine well tuned, check your oil and fix any
problems immediately.
5. Make sure your tires are at the correct pressure and not underor over-inflated.
6. Keep your trunk/boot or back seat clear of unnecessary items
that add weight.
7. If you are not using your roof rack or roof box, take it off.
8. Keep your windows closed, especially if you are driving at
higher speeds.
9. Always use the recommended grade of oil in your engine.
10. Use cruise control on major roads and in free-flowing traffic.
Source: Ian McGibbon, Downstream Retail Communications
11. Turn off your engine in heavy traffic to avoid excessive idling.
SHELL WORLD PHILIPPINES 9
COUNTRY
ROUND-UP
Shell leads forum on Euro IV and
the Philippine Biofuels Law
Pilipinas Shell Petroleum Corporation (PSPC), in
partnership with the Department of Energy (DoE), led
representatives from government, the oil industry,
vehicle manufacturers, environmental advocates and
other concerned groups in the discussions on future fuel
quality standards during a forum on “Euro IV and the
Philippine Biofuels Law” held on July 30, 2008 at the
Sofitel Plaza Manila.
In his welcome remarks, Shell companies in the
Philippines Country Chairman Edgar Chua said
that the forum was “an avenue to exchange views on
the appropriate standards and to recommend timing
for the implementation of Euro IV in conjunction
with the Philippine Biofuels Law.” He also
emphasised the importance of having a science-based
approach in discussing the impacts of Euro IV
specifications as these have effects on supply security
and on the vehicle population.
DoE Secretary Angelo Reyes said that in light of the critical
challenges of climate change and energy security, the forum
is an opportune time for the Philippine government and
various sectors to come together to devise a roadmap and a
strategy on how to develop cleaner fuels for vehicles and
improve air quality in the country’s urban areas.
During the forum, Shell Global Solutions Fuels
Technology Team Manager (Asia Pacific & Middle East)
Eric Holthusen presented the impact of changing
Shell’s Eric Holthusen and Dominico Brandares
10 SHELL WORLD PHILIPPINES
specifications on gasoline and diesel performance on the
environment. “A sound science approach should be the
basis of timing, phasing and leveling of new Asian fuel
specifications,” said Holthusen who recommended that
vehicles and fuels be treated as an integrated system to
maximise impact on air quality, and that legislation
concentrate on fuel parameters that have a significant
impact on air quality to facilitate economic
implementation of cleaner technologies, with
government policy and legislation clearly defined.
Among the panel of speakers of the forum were Director
Zenaida Monsada of the DoE’s Oil Industry Management
Bureau, Engineer Teresita Peralta of the DENR-EMB
(Department of Environment and Natural ResourcesEnvironmental Management Bureau), Herbert Fabian of
the Clean Air Initiative for Asian Cities Center, Inc.,
Allister Go of Petron Corporation and Dominico
Brandares of Pilipinas Shell Manufacturing.
Pilipinas Shell Petroleum Corporation
recently commissioned M/T Andrea SC,
another double hull vessel to transport
Shell oil products.
Sixth double
hull tanker
for Shell’s oil
products
M/T Andrea, a new white oil double
hull tanker owned by Sun Marine
Corporation, features a state-of-the-art
engine control room as well as latest
safety, communication and navigational
equipment. Classed by the American
Bureau of Shipping (ABS), it has a net
tonnage of 1,777 tons.
Sun Marine Corporation Chairman
Josefina Mallari (right), Pilipinas
Shell Chairman and President Edgar
Chua (middle) and Maritime Industry
Authority (MARINA) Administrator
Vicente Suazo (left) led the ribboncutting ceremonies of M/T Andrea
SC at the South Harbor in Manila on
July 9, 2008.
The commissioning of the newly built double hull oil
tanker affirms both companies’ commitment to use
double hull tankers for white oil products by 2010,
ahead of the International Maritime Organisation Policy
and any local mandate.
“We congratulate Sun Marine for leading the shipping
industry in implementing double hull for white oil ahead of
the local regulations. This only shows the company’s
commitment to safety and the environment by complying
with internationally accepted standards,” Chua said.
M A R I N A A d m i n i s t r a t o r V i c e n t e Su a z o l i k e w i s e
l a u d e d Su n M a r i n e f o r c o m p l y i n g w i t h
internationally accepted standards and local
standards on double hull implementation and
abiding with the local regulations set by the
a g e n c y. [ Jo D i a n a - D i g a ]
Pilipinas Shell boosts presence in Mindanao
Pilipinas Shell Petroleum Corporation (PSPC)
opened four more retail service stations in the cities
of General Santos and Koronadal in Mindanao on
June 16, 2008.
The Chamber of Automotive Manufacturers of the
Philippines (CAMPI) suggested for an alignment in the
adoption and implementation of fuel standards as well as
a review of the local framework and harmonisation with
ASEAN counterparts.
The newly opened service stations of Shell brought
the number of active outlets to over 190 in the
Mindanao area. This is part of Shell Retail’s
continuing expansion programme in Mindanao.
Meanwhile, Pilipinas Shell Manufacturing Technology
Manager Dominico Brandares, Jr., presented a refiner’s
point of view in meeting tighter fuel standards. He said
that except for sulphur, Asian countries implement Euro
IV based on specifications that are dependent on a
country’s strategy.
DoE Undersecretary Mariano Salazar reiterated their
commitment in taking the important step in adopting
cleaner fuels and biofuels. “Fuel quality improvement
is a continuing process - we at the government are
committed to make further consultations with the
industry as we progress in the adoption of cleaner fuels
and biofuels and take on parallel steps to review the
Asian standards vis-à-vis local regulations,” Salazar
said. [Jo Diana-Diga]
Chua added that the commissioning of M/T
Andrea marks an important milestone for both
companies in terms of adherence to Health,
S a f e t y, S e c u r i t y a n d t h e E n v i r o n m e n t ( H S S E ) .
“There are a lot of areas here in Mindanao that
remain underserved by the petroleum industry and
we intend to cover them within the near future,”
said Samuel De Guzman, former Shell General
Manager for Retail Sales and Operations for the
Philippines and North Pacific cluster.
In photo are former Pilipinas Shell General Manager-Retail Phils. NPI Cluster Sammy De Guzman
(2nd from right) and Shell Dealer’s son Digoy Tan (left) leading the ribbon-cutting ceremonies
witnessed by (2nd from left) Retail Territory Manager Donn Idos and Retail District Manager
Mindanao Ricky Altonaga (extreme right).
According to Shell Regional Retail Manager for
Mindanao Ricky Altonaga, since last year, PSPC has
already opened at least 22 additional outlets spread
across Mindanao’s emerging growth areas, among
them the South Cotabato, Sultan Kudarat, Sarangani
and General Santos (SOCSKSARGEN) areas.
In the cities of Koronadal and General
Santos, which host the bulk of the area’s
industries, Altonaga said the company now
maintains at least 16 retail service stations.
He cited SOCSKSARGEN as among the top
growth areas in Mindanao in terms of
petroleum demand.
The opening of the four new retail stations
also served as the launch for PSPC’s flagship
Fuel Economy formula in the Mindanao
growth areas. The formula is designed to
make fuel consumption more efficient
through the use of Shell’s “new and
advanced” fuel products and the application
of efficient driving strategies by motorists
or vehicle owners.
During the launch, Shell hosted the FuelSave
Challenge, a four-hour road trip participated
in by media practitioners and selected Shell
dealers and customers, to test the fuel economy
drive. [Jun Jay G. Jimenez]
SHELL WORLD PHILIPPINES 11
BFP, Shell honour 10 outstanding firefighters
Pilipinas Shell Petroleum Corporation (PSPC)
partnered with the Bureau of Fire Protection
(BFP) in the first ever Search for the 10 Most
Outstanding Firefighters of 2008 to honour
the heroic feats of firefighters.
Out of 40 applicants, the BFP shortlisted 10
candidates based on the following
qualifications: those who have attained at least
a “very satisfactory” rating in their last two
Performance Appraisals based on performance
evaluation reports; and those who have
performed extraordinarily, such as service
beyond the call of duty and risking of life in
response to emergencies.
An External Committee, composed of
representatives from PSPC: Bernard Ong GM for LPG, and Sebastian Quiniones - VP
for Distribution, and three representatives
from various sectors: Ellen Aben – Reporter of
the Manila Bulletin, Atty. Reynaldo Esmeralda
– Deputy Director for Regional Operations
Services of the National Bureau of
Investigation, Ryan Joseph-Dean of Rotary
Club of Diliman North, and Wilfredo Munoz,
CSC, CCP – Director-in-charge of the Safety
Organisation of the Philippines Fire Safety
Division, ranked the 10 candidates to select
the Most Outstanding Firefighter.
FO3 Estanislao Temblor of
Region I was selected as the
Most
Outstanding
Firefighter for risking his
life in a fire in La Union,
where he willingly responded
even if he was not on duty.
A special commendation –
the Lifetime Achievement
Award was given to Engr.
Nelson Se, Sr., Chief of the
Fire Science and Standards
Development Division, for
instituting
various
programmes
for
the
advancement of BFP in the
area of fire prevention.
Other winners were SUPT. Mauricio V.
Ramos - NATIONAL CAPITAL REGION
(NCR), SINSP. Jerome T. Reano – REGION
4A, SFO4 Jaime J. Pabalan – REGION 4A,
SFO2 Lowie A. Puno – NCR, FO3 Elino DC.
Nell – NCR, FO1 Guiller T. Pegarido –
REGION 7, FO1 Leo L. Lagata – REGION
5, and the BAGUIO CITY FIRE STATION
EMERGENCY MEDICAL SERVICES
(EMS) TEAM led by INSP. Rito B. Rafer.
Members include FO2 Frederick C. Calama,
FO1 Alex Gerard M. Aquitania, FO1 Roger
dela Cruz, FO1 Jerry Sanoy, FO1 Perla
Pugong, FO1 Felma Jamorabon and FO1
Gilbert Gano, all of Cordillera Autonomous
Region (CAR).
In expressing his gratitude to Shell for the
support, the BFP Chief Director Linsangan
said, “This search is an extra mile of recognising
the tireless energy of deserving BFP personnel
nationwide who are performing either
operations or administrative functions.”
The winners were awarded during the BFP’s
17th Anniversary Celebration held on August
1, 2008 at the Quezon City Sports Complex.
Representing PSPC were CNG Project
Manager Richard Behag, LPG Business
Development Head Andy Mendiola, and
Government and Media Relations Manager
Mich Cruz. [Mich Cruz]
The Cleanest
and Most
Orderly Depot
in Iligan
In line with Presidential Proclamation No.
15-A declaring the month of June as Port
and Sea Safety Month, a team composed of
representatives from the Philippine Ports
Authority (PPA), Philippine Coast Guard
(PCG), Bureau of Fire Protection (BFP),
Safety Organization of the Philippines,
Inc. (SOPI), and Fishery/Plant and
Veterinary Quarantine Offices recently
held an inspection on all relevant industrial
sites in Iligan City.
Shell and PNP-NCR strengthen
partnership for peace and order
The clean and orderly features of the
terminal as well as the implementation of
stringent
safety
regulations
and
safeguarding systems impressed the
inspection team and heralded Shell Iligan
Joint Operations (JO) Terminal as the
Cleanest and Most Orderly Depot.
Pilipinas Shell Petroleum Corporation (PSPC) signed a memorandum of
agreement with the Philippine National Police–National Capital Region
(PNP-NCR), which strengthens the Shell-Mamang Pulis partnership to
promote peace and order within and around the vicinity of Shell Stations.
Shell Iligan Depot Manager Jun Vale and
Iligan Depot Cashier/Stocks Jose Paulo
Ore II received the award from PPA Port
Manager Prudencio Mercado and SOPI
President Engr. Antoine Seva.
Association of Pilipinas Shell Dealers, Inc. (APSDI) – Metro Manila
Chapter led by its Chairwoman Charie A. Antonio and the Philippine
National Police – National Capital Region (PNP-NCR) represented by its
Police Director Geary L. Barias signed the agreement on July 14, 2008 at
the PNP-NCR Headquarters in Camp Bagong Diwa, Taguig. APSDI is an
association of PSPC dealers engaged in the business of retailing petroleum
products through the Shell service stations.
The agreement ensures police presence in Shell service stations and other
similar facilities by providing patrolling police with standby areas during the
conduct of neighbourhood patrol. Posters showing PNP hotline numbers
are posted in the Shell service stations for quick access to the law enforcement
agency. In addition, community billboards will be put up in Shell stations for
posting of police advisories and crime prevention leaflets.
Signing the MOA are (seated) PNP-NCRPO Director General Geary Barias (2nd from
left) and APSDI President Dr. Charrie Antonio (2nd from right) together with PSPC District
Manager for Metro Manila Oying Yam (extreme left) and Police Superintendent Eric
Javier. Witnessing the signing are representatives from Shell (standing) PSPC Vice
President for Communications Bobby Kanapi (2nd from left), APSDI Officer and Retailer
Terry Valladores and PSPC HSSE Manager for Retail Paolo Sillona.
12 SHELL WORLD PHILIPPINES
“The recognition is indeed a demonstration
of strong leadership and teamwork in the
area and the support delivered by the rest of
the team,” said Regional Distribution
Manager-Southern Islands Wulfido Lacno.
[Jose Paulo Ore II]
Shell radio ad
hailed at 49th
CLIO Awards
The Shell radio ad “Are we there yet?” was
recognised as one of the best creative works for
2008. JWT Manila bagged the Bronze at the 49th
Annual CLIO Awards in the Radio Ad category
held at the Jackie Gleason Theatre in Filmore
Miami Beach.
The 30-second radio commercial created by JWT
Manila had a short and simple yet very effective
message. The ad showcases to consumers that
Shell’s new fuel economy gasoline has a unique
formula that would help you go further on every
tank. The radio ad manifested the advertising
agency’s creative excellence.
JWT Creative Director Joe Dy said that “the key
to the radio ad is the incessant repetition of the
widely recognised line “Are we there yet?”
In photo are (from left) JWT Manila’s Kara Bautista,
copywriter, and Joey Dy, creative director of the Shell
radio ad; JWT Manila’s General Manager Raul Villegas,
Former Pilipinas Shell General Manager for Retail
Sammy De Guzman and Shell Retail Marketing Manager
Arlene Manalo.
JWT Manila’s Team of creative individuals used a
kid’s voice that later transforms into an adult’s. It
revealed to people that if they want to cover longer
distances with a minimum of fuel, then they need
only to use Shell Unleaded as it is designed to take
its customers further.
The Clio Awards is the world’s most recognised
awards competition for advertising, design and
interactive media.
New products from
Shell Lubricants
Shell Lubricants introduces its new range of products designed to
give your car engine protection for improved performance and a
smoother drive.
Shell Advance Scooter 4T motorcycle oil 10W-40
A unique synthetic-based motorcycle oil specially formulated for
modern high-speed 4-stroke scooters, moped and underbone
motorcyles. It has the DPA (Dynamic Performance Additive)
technology which prolongs the life of the engine.
Shell Helix Motor Oil 20W-50
Mineral-based oil for hardworking engines of taxi cabs, multi-cabs
and AUVs, using either gasoline or LPG. Shell Helix motor oil is
the trusted partner on the road.
Barias said that the presence of police personnel in Shell service stations
shall help in deterring robbery gangs and holdup syndicates from staging
criminal activities and foster peace and order by preventing and controlling
crimes to secure public safety in Metro Manila.
Shell Helix Diesel Plus 10W-40
A synthetic-technology diesel engine oil which gives exceptional
clean up to SUVs, AUVs, Pick-ups and Vans. With special cleansing
agents that remove soot deposits and keeps diesel clean right up to
the next oil change.
This PSPC initiative, led by PSPC Retail’s Health, Safety, Security and
Environment Manager (HSSE) Paolo Sillona and Territory Manager/
HSSE Focal for Metro Manila Jon Cuadra, supports the PNP’s Mamang
Pulis programme of increasing police visibility and helping uplift the image
of the police as citizen-friendly, credible and capable. [Jun Jay G. Jimenez]
The Shell Advance Scooter 4T motorcycle oil, Shell Helix Motor
Oil 20W-50, and Shell Helix Diesel Plus 10W-40 are available in all
Shell retail stations and auto supply shops nationwide.
SHELL WORLD PHILIPPINES 13
FEATURE
To stabilise greenhouse gases in the atmosphere at
anything like what scientists say is the upper limit,
the world needs to cut its emissions in half.”
KEY FACTS
Perhaps surprisingly, 85% of the emissions attributed to Shell
today are generated when customers use its products.
“Of course, we have to look at how we reduce the impact of our
operations,” says Rob. “But the Downstream business also has
a huge opportunity to help its customers reduce their energy
demand and CO2 emissions.”
Niel Golightly, Vice President Downstream Communications,
goes on to explain: “We’re used to the phrase ‘licence to operate’;
doing everything possible in order to continue to do business.
‘Better blueprints’ is a slight variation to that and is about ‘licence
to grow’. If we can develop products and services that reduce CO2
emissions and energy use, we can turn this challenge into a
competitive market opportunity that allows our business to
continue to be relevant and to actually grow in a new space.”
CO2:
FROM THREAT
TO OPPORTUNITY
At Shell Business Week recently, the energy
challenge was a big area of discussion and, as
part of the downstream session, leaders
discussed an exciting new programme to help
address it. With the working title ‘better
blueprints’, this programme aims to introduce
more energy-efficient and low CO2 products
for more customers more quickly.
14 SHELL WORLD PHILIPPINES
The energy challenge is a subject close to most people’s hearts.
Meeting that challenge means acknowledging what Shell calls the
“three hard truths” about energy. The first is that the world’s need
for energy is growing. Fast. By the middle of this century there
could be more than nine billion people using twice as much energy
or more. The second hard truth is that conventional oil and gas are
becoming harder to find and produce. And the third hard truth is
that, given today’s technologies, more energy use means more
CO2 emissions – at a time when the climate can ill-afford it.
“To stabilise greenhouse gases in the atmosphere at anything like
what scientists say is the upper limit, the world needs to cut its
emissions in half,” explains Rob Routs, Executive Director
Downstream. “So if the world needs twice as much energy and
half as much CO2, we need to figure out how to cut emissions.”
Voicing his strong support, Rob Routs says this is a major new
arena where the Downstream business can make a real difference:
“No company is better positioned to offer the right products and
services to customers and we have the thought leaders who can
make this happen,” he says.
Each Class of Business in Shell has been tasked with setting an
annual CO2 reduction target and accelerating delivery of their low
CO2 and energy-efficient products and services.
“This programme will be embedded into our plans and budgets, it
will be part of our discussions on capital investment and it will be
very much part of our strategic planning,” adds Rob.
Rob stresses that this is a priority for the business:
CO2
SEQUESTRATION:
CARBON
CAPTURE AND
STORAGE
• Once captured, CO 2 can be stored away for
thousands of years underground in aquifers or in
some oil and gas fields.
• Costs of Carbon Capture and Storage (CCS) will
have to be driven down over time through
demonstration projects and enhanced technologies.
• Many technical hurdles must be overcome before
CCS can be applied on a large scale.
• Other ways of sequestration include:
- Biological sequestration – the natural absorption of
CO2 by plants to remove CO2 from the atmosphere
and store it away in trees and crops.
“We want to shape, grow and lead the market for low CO2 products
and services,” he says. “We have to do this right, fast and with a lot
of thought but it’s going to be something that people are going to
be proud about.”
- Surface mineralisation – fixing CO2 chemically into
inorganic carbonates that can be used for building
materials and other long life goods.
Shell is also tackling the CO2 issue on five other fronts: A drive
for first quartile energy efficiency across its operations;
development of low CO2 sources of energy, particularly
biofuels; acceleration of Carbon Capture and Storage solutions;
alliances and advocacy and targeted R&D. SWP
• CCS is important to Shell. It lends itself very well
to cooperation with third parties – one of the
reasons for the symposium – and allows us to build
on others’ ideas and knowledge.
Source: Katie Deeble - Downstream Internal Communications Manager
SHELL WORLD PHILIPPINES 15
FEATURE
ENERGY TECHNOLOGY
REVOLUTION – AN INTERVIEW
WITH JAN VAN DER EIJK, SHELL’S
CHIEF TECHNOLOGY OFFICER
A
Deflocution tank for raw intake water at Brunei Shell’s Enhanced Oil
Recovery (EOR) pilot project known as the Roxana Chemical
Demonstration Miniflood (CDMF), which was started in May 1983.
A surfactant or ‘soap’ solution is flushed through a watered out
reservoir to mobilise the residual oil ‘trapped’ in the pore spaces.
Our overriding goal is to grow our
energy business while managing our
CO2 footprint.”
s roving ambassador for technology both inside and outside the company,
Shell Group CTO Jan van der Eijk constantly searches for ways of
expanding Shell’s energy-based horizons within the confines of a world
with finite resources.
Talkative and enthusiastic, this self-effacing Dutchman doesn’t fit one’s
preconception of a Chief Technology Officer (CTO). A self confirmed
“technology optimist”, the words “CO 2 ” pass his lips as frequently as
“hydrocarbons”; he is acutely aware of both the possibilities and challenges that
we face on the eve of a revolution in energy technology.
To start with, what exactly does the position of Shell’s CTO entail? “My role is to
ensure the ongoing development and implementation of Shell technology and, in
doing so, to support the realisation of Shell’s business aspirations,” explains Jan. “I
lead the team of Shell’s Chief Scientists that promote scientific skills within the
company and make sure we keep up with emerging energy technologies.” He sees to it
that there are granular business plans established that drive technology programmes,
ensuring that innovations leave the labs and are taken up within the company in a
timely fashion. “Our overriding goal is to grow our energy business while managing
our CO2 footprint,” he explains. At the same time, Jan spends lots of time talking
with people outside of Shell, in governments, companies, universities and elsewhere.
“It’s about 50/50 these days,” he says. As such, he serves as a conduit for ideas within
Shell as well as to and from the outside world, often forming partnerships to speed up
the development and implementation of technology.
Exciting Technologies
As Jan sees it, what are the most exciting upstream technologies at Shell at the
moment? “First, I’m mightily impressed with the ability to ‘see’ what is underground,”
he says. “As high-performance computing becomes more pervasive, we should be
able to do even more in this area.” He points out that sophisticated techniques have
already played a valuable role in recent block auctions. “Second,” continues Jan,
“Shell’s Enhanced Oil Recovery (EOR) techniques, such as gas injection, polymer
flooding and thermal recovery. A particularly exciting development is the concept
of subsurface hydrocarbon upgrading. I think there is a tremendous future for
subsurface processing; that is, manipulating hydrocarbons in-situ, using heat and
chemical reactions, before you extract them. There are a considerable number of
reservoirs with heavy oil deposits which, until now, have not been considered
suitable for development and production. Subsurface processing may make it
feasible to extract energy from these reservoirs in a responsible manner. “Another
area of great promise is the use of detergent-like surfactants (wetting agents that
lower the surface tension of a liquid) for hydrocarbon extraction. It is a great example
of cross-fertilisation within Shell,” Jan continues, “in that we apply knowledge
about detergents gained in our chemical industry activities to our upstream
activities.”
The Petroleum Development Oman (PDO) steam plant at Marmul,
Oman, which uses the Enhanced Oil Recovery (EOR) process.
16 SHELL WORLD PHILIPPINES
Jan cites Shell’s strong position as a technology company across the board. “The
strength in technology at Shell is partly reflected by the large and growing number of
patents we hold – more than 30,000. We can be justifiably proud of our technology
track record. Our patents will continue to provide value and growth for our operations
worldwide in the decades to come,” he observes.
CO2 Solutions
How does Jan envisage Carbon Capture and Sequestration (CCS) fitting into
Exploration and Production activities? Will it become an integral part of the
upstream project portfolio? “The use of CO2 for EOR and the storage of CO2 in
empty reservoirs and saline aquifers are increasingly areas of focus for the company.
While we have been working with CO2 for EOR since the ‘60s and more lately
rapidly developing our CCS capabilities, I expect to see a rapid new growth in
projects, many in cooperation with our business partners,” he replies.
The Shell Wind Project has resulted in the set up of
wind farms in Whitewater Hill, USA.
Aren’t some of the most promising technologies, such as CCS, and shale-to-oil, in
themselves rather energy-intensive? “Indeed, sometimes we use a fair amount of
energy to retrieve more. This is where our technology efforts can help us; by finding
ways to reduce energy consumption and to mitigate CO2 emissions where possible.
But you can’t look at these things in isolation,” he points out. “The world needs
more energy, and oil and gas from conventional sources will struggle to keep up
with growing demand.”
Sustainable Alternatives
“You have to weigh one thing against another, be it coal versus nuclear, solar versus
wind power,” asserts Jan. “All have advantages and disadvantages. There is no
panacea, no silver bullet. Developing affordable alternatives to meet the world’s
requirements will take a long time and most experts agree that in 2030 around 75%
of the world’s energy will still have to come from fossil fuels. So the pace will be
slower than many people think,” he cautions. Jan and others within
Shell are working to develop a business portfolio that includes at least
one material renewable energy business. He points out that Shell is
committed to having one substantial renewable business by 2015.
“Biofuels is a promising candidate,” he says “Another option is wind.
Today, we are involved in onshore and offshore wind projects in
Europe and North America, where the USA in particular is
considered a fast growing market in wind energy. As a significant
investor in wind energy we are generating emission-free electricity
that saves around 1 million tonnes of CO2 a year compared to
emissions from a traditional coal-fired plant.”
For the time being, however, much of Shell’s efforts will go
into the responsible, least environmentally impactful
recovery of what Jan calls “challenged sources” of
hydrocarbons; difficult hydrocarbons that include oil
sands and oil shale, tight gas, deep water, and deposits in
geographically sensitive areas, such as the Arctic. “With
respect to accessing challenged sources, Shell is an industry
leader,” Jan concludes. SWP
Source: Bernadette Cunnane - Global Internal Communications
The strength in technology at Shell is partly reflected
by the large and growing number of patents we hold
– more than 30,000.”
SHELL WORLD PHILIPPINES 17
FEATURE
EVERYBODY
LOVES KEITH!
Keith (3rd from left) with (l-r) Chevron President Hank Tomlinson, SciP Country
Chairman Edgar Chua, US Ambassador Kristie Kenney, UK Ambassador Peter
Beckingham, SPEX’s Steven Ulok, Donald McDonald, and Wenceslao Salido.
Keith as Michael
Jackson (top photo)
and as Freddie
Mercury (photo
below) during
the past SPEX
Christmas parties.
ONE THING IS SURE,
KEITH PERRIN WILL NEVER BE FAR
FROM PHILIPPINE SHORES.
By TET DEFENSOR
Keith Perrin tours Prince Andrew of York around
the Malampaya On-Shore Gas Plant.
I
t’s 10 am on a weekday and Keith Perrin is
wrapping up a short discussion with a
colleague. The papers piled up on his neatly
kept desk indicate all matters in need of his
attention for the day. His monitor is active,
proof that he began working earlier in the day.
And just before he sits for this memorable
interview, he asks for a few minutes, which he
utilises by pounding away on his keyboard.
This may seem like a typical busy morning for
the Shell Philippines Exploration B.V. (SPEX)
Asset Manager, but for the rest of the SPEX
community, the next few weeks will be extra
meaningful. Mr. Keith Perrin is scheduled to
vacate his post come first quarter of 2009, a
position he has held for the last seven years.
To state that his excellent performance and
work ethic will be missed is an understatement.
Apart from being the Asset Manager, he is
also the Local Senior Exploration and
Production Representative and Managing
Director, which makes him the driving force
behind SPEX, at the helm of running
Malampaya’s day-to-day operations.
This is the best job I ever had in
my whole career, the best group
of people I ever worked with
in my life, and the most high
profile and demanding project.
How can I ever replace this
good feeling?”
Prior to joining SPEX, Keith has had a long
career with Shell starting as a Technologist of
Shell Haven Refinery in UK, then moving to
Exploration and Production (EP) in Qatar as a
Process Engineer commissioning 3 offshore
platforms. He also worked in Shell Nigeria as
Head of Gas Planning, and then Shell
Internationale Petroleum Maatschappij B.V.
(SIPM) as Process Engineering Discipline
Head in The Hague, Netherlands. In 1994,
Keith was transferred to Shell U.K. Exploration
and Production (Shell Expro) as Engineering
and Projects Manager, and later as Asset
Manager, and then General Manager of Shell’s
Southern North Sea operations, responsible
for about 20 offshore gas platforms. He
transferred to SPEX in 2001 as the first Asset
Manager, in time for the start up of the
Malampaya Deepwater Gas-to-Power project.
In the Philippines, Keith spearheaded
SPEX’s overall operations and initiated
18 SHELL WORLD PHILIPPINES
Golf is one of the many
things Keith is good at.
programmes that paved the way for the
impressive performance and growth of
the Malampaya business. He was dynamic
and indefatigable, and SPEX staff looked
up to him as the leader who was always on
the go! This led to the development of a
highly reliable natural gas supply, which
has become the backbone of the electric
power supply business in Luzon. Under
Keith’s leadership, SPEX has so far
achieved six years without a Lost Time
Injury amid challenging but successful
production, maintenance, engineering
and logistics operations.
Along with his expertise and extensive
experience, Keith is also blessed with a
contagious passion for work. He proudly
shares that there wasn’t a single day during
his seven-year stint in SPEX when he ever
disliked coming to work, despite the
considerable challenges and stresses that
came with running the very first natural gas
facility in the country.
“I came here in 2001 at the start of
Malampaya expecting to be here for only
four years. When the company reorganised
in 2004, I took over not just the Asset
Manager role, which was what I originally
came here for, but also the overall
coordination role for SPEX. The job
expanded, which is one of the reasons I have
been happy to stay for seven years. This is
the best job I ever had in my whole career,
the best group of people I ever worked with
in my life, and the most high profile and
demanding project. How can I ever replace
this good feeling?” Keith muses.
Setting up Malampaya, the very first
significant oil and gas production operation
in the country, was no easy feat. Currently,
SPEX supplies half the country’s energy
demand from its single offshore platform,
500 km pipeline, and onshore gas plant. Put
another way, Malampaya is powering one in
every two light bulbs across the country.
There is never a day when Keith forgets the
immense responsibility to Shell, the
Malampaya Joint Venture Partners (Chevron
and the Philippine National Oil CompanyExploration Corporation), the government
and country, resting on his team’s shoulders.
Keith is confident that the foundation he
built for SPEX will stand tall even if he is no
longer at the helm. “One of the biggest
satisfactions is to be able to hand over a
company which has a proud history of not
hurting people, one which has had greater
than 99.8% availability to customers since
start up, and a skilled and experienced team
motivated to continue improving the
business. My objective is to leave and no one
notices,” shares Keith.
The high profile facility definitely came with
challenges of all sorts. “I call them ‘Malampaya
moments’. Typically, on a Friday evening when
all the office staff have gone home, I would get a
call that something serious had gone wrong.
With half of Luzon depending on Malampaya
for power, if we go down, then it’s really bad
news for everyone. I sometimes find myself with
my head in my hands, thinking ‘how on earth
do we solve this?’ We’ve been so close to not
being able to supply gas a few times, but save for
one or two minor exceptions, we have always
managed to solve the problem just in time –
without ever compromising safety.”
Keith says it would have been a totally different
story if it were not for the fantastic experience
and dedication of the extended team assembled
in SPEX. “Even on a Friday night, in such
short notice, around 5 to10 key people are
already sitting in a room developing a solution,
in close conjunction with the teams at the
platform and gas plant. Before you know it,
people are mobilised, helicopters are flying,
spare parts or specialist vendors identified and
located, and that’s it. It’s solved! What I like
about this company is that it has fixed the
impossible on a routine basis.”
He attributes much of the success of SPEX to
his dedicated team. “Select the right people
with the right attitude, and give them a
chance to show what they can do - and then
watch what happens!”
His leadership definitely deserves the
highest mark for the company’s safety
performance. In fact, there is a strong
sense of pride whenever he shares the
many achievements of the SPEX team –
Shell staff and contractors. “It will be a
huge relief and satisfaction to hand over a
clean slate to my successor. I have never
seen such collective determination to
ensure this happens, or that it should
continue indefinitely…!”
On top of all these records and achievements,
Keith never forgets the value of having fun.
He believes it is important to work hard, but
also to party even harder! Keith will surely
be missed for all his energetic performances
during SPEX’s colorful parties and functions,
not to mention his creative costumes…he
was no less than the King of Pop Michael
Jackson during last year’s Iconic Christmas
party, moving on from brief spells as Freddie
Mercury and Austin Powers. “I will never
forget the thrill of living my dream of playing
the guitar (and even singing!) for the first
time ever in my life in front of 300 staff/
contractors – because no matter how bad the
performance was, everyone is still on your
side if you have a go!”
In a few months, all of these will be but a
touching legacy for the company’s most loved
officer. And while he is sure to miss his
colleagues, Keith feels it’s high time to pass the
torch to the next leader.
“Walking out the door for the last time will
be one of the most difficult things I will
ever do – I will miss my friends and
colleagues, the fun, the challenges and the
successes – but it’s time to try and find that
buzz somewhere else now. I will obviously
have more time to be with my family, who
have endured my absence doing this job. I
will also have more time for my long
abandoned hobbies, but still have enough
left to do something purposeful, including
some work in the areas I find most enjoyable.
I cannot switch off completely - from doing
so many things to nothing would be a huge
shock to my system.”
Although there are no clear plans for
his next steps, one thing is sure, Keith
Perrin will never be far from Philippine
shores. “ The Philippines is a great place
for foreigners to live. I’ve also worked
in Europe, Africa and the Middle East
– but the Philippines is the best,” he
says with a smile.
Months before his final workday, there
is already a distinct crack in ever y
SPEX employee’s voice, when the
subject turns to his depar ture. Some
cannot help but hold back their tears.
Even Keith himself cannot imagine
what life will be like once he steps out
of the company premises. He got so
used to working in SPEX, with its
unforgettable team that oozes of a funloving culture – the SPEX organisation
comprised mostly of Filipinos. Keith
says he will surely miss ever ything that
defines SPEX -- its people, values and
most of all, the infectious laughter. For
Keith, seven years in SPEX is a lifetime
of good memories.
Keith’s contributions are all too meaningful
to be quantified.
While the SPEX
community may be letting go of a
pioneering visionary, inspiring leader,
hardworking colleague and trustworthy
friend, the Keith Perrin legacy will surely
remain, for it has helped build the solid
foundations for the country’s vital
Malampaya operations. SWP
SHELL WORLD PHILIPPINES 19
COVER STORY
BEYOND PERFORMANCE
By JUN JAY G. JIMENEZ
Shell’s journey with motorists is all about creating
awareness on fuel efficiency through the application of fuelefficient driving practices and the use of more economical
fuel formulations. Less fuel consumption translates to an
array of benefits like more savings for motorists, better air
quality for every human being and less harm to the
environment with reduced carbon dioxide (CO2) emissions.
OIL IS AT A TIPPING POINT.
The demand for oil is high all over the world and oil reserves are either situated in geographically difficult
or politically challenged areas. The price of oil is still volatile in the world market and often treads through
periods of uncertainty before it stabilises.
Nations are struggling to secure a continuous supply of oil to keep their economies afloat. For those
living in countries heavily dependent on imported oil, the restless oil price hikes are hitting the pockets
of motorists hard.
But what can we do in this era of “difficult” oil?
We must all be conscious of our fuel consumption. And to help millions of motorists achieve higher fuel savings,
Shell offers several ways to conserve fuel, conquer lengths of roads, and stretch budgets to make us enjoy more
of life’s pleasures.
Through Shell’s Fuel Economy formulas and fuel-stretch driving tips, motorists could save 10% or more fuel
when driving, which does not only mean monetary savings but ecological preservation with less CO2 emissions
to harm the environment. CO2 emissions from energy are responsible for more than half of man-made
Greenhouse Gas emissions, which contribute to Climate Change.
A breakthrough journey for fuel economy
Shell is at the forefront of technological innovation. Devoted to help motorists go further, Shell once again
became a champion of fuel economy when it provided its breakthrough petrol formulation in 2006,
powering the Volkswagen Golf FSI 1.6, which John and Helen Taylor drove for an expedition that traversed
25 countries in 78 days using only 24 tanks of Shell gasoline with Fuel Economy formula.
Shell and the Taylors went all out for this record-breaking journey to show motorists around the globe that
everyone can achieve fuel economy in their everyday living. The celebrated round-the-world journey was
successful in clinching a Guinness World Record for Fuel Economy and helped Shell test the efficiency of
its new formulation on different road and weather conditions.
In the succeeding years, Shell tirelessly embarked on breakthrough researches to produce fuels that enable
motorists to go further on their regular load of fuel and save money on their fuel consumption. Shell research
identified numerous ways in which fuel can impact on engine performance. The wealth of knowledge
unraveled by these endeavours produced advance Shell fuel formulations that deliver improved engine
efficiency and fuel economy benefits to the widest cross-section of drivers.
In the Philippines, Shell’s Fuel Economy formula conquered millions of motorists. The new
formula is a product of a forty-year commitment by Shell to bring customers all over the world
improved fuel economy.
Vehicle provided by Ford Philippines Inc.
Formula for fuel efficiency
Considered as Shell’s most advanced formula ever for gasolines, the new fuel economy formula is a cut
above the rest. Among the pool of competing fuels in the market today, Shell’s Fuel Economy formula fuels
contain blends of advanced additives and cleaning agents that can help improve drivers’ fuel efficiency by
reducing energy loss in engines.
Shell Super Premium, Shell Super Unleaded, and Shell Super Unleaded E10 contain the revolutionary
triple action cleaning system that improves engine efficiency through effective combustion, which means
less of the energy available from fuel is wasted and more useful energy is harnessed to propel the vehicle
forward. Shell’s new Fuel Economy formula is designed to work continuously to improve engine efficiency
and helps to reduce the amount of deposits that accumulate on the engine. As a result, Shell’s Fuel Economy
formula increases fuel efficiency and reduces motoring costs.
Shell Diesoline Ultra also contains a unique Fuel Economy formula that is designed to ignite and burn more
quickly than regular diesel and keep your engine clean, which helps lead to more effective combustion in your
engine. This, in turn, helps improve your engine’s efficiency.
“Improving fuel efficiency is a task that requires dedication and persistence from our researchers. It is an
activity, where technological progress comes in incremental steps and Shell has been working on the subject
of making more efficient fuels for more than 70 years now. It is this wealth of experience and knowledge
gathered over several decades that enabled us to be a leader in this field and the recently introduced triple
action cleaning system is a proof of our continuing progress in making better fuels,” says Shell Global
Solutions Fuels Technology Manager Eric Holthusen.
20 SHELL WORLD PHILIPPINES
SHELL
SHELLWORLD
WORLDPHILIPPINES
PHILIPPINES21
21
COVER STORY
“Using Shell fuels gives numerous
advantages like bigger savings and more
mileage,” Jozar shares.
Amy Jarlego-Victa of Nation Broadcasting Corporation (seated) gets fuel
save tips from Shell Fuels Brand Manager Carl Posadas during the Fuel
Save Simulator Challenge held recently at Shell House in Makati City.
In the succeeding years, Shell tirelessly embarked on
breakthrough researches to produce fuels that enable
motorists to go further on their regular load of fuel and save
money on their fuel consumption.
On the road to test the formula
It is Shell’s goal to demonstrate the real life
benefits of its Fuel Economy products in line
with its aspiration to help the world’s motorists
save 10% or more fuel when driving.
Shell believes that fuel economy is a personal
experience and must be tested in a consistent
and real world scenario. As Shell hopes to raise
awareness on fuel economy, it launched a Fuel
Economy Fleet Study with its fleet partners
last year.
Shell gathered nearly 1,000
professional drivers from 10 companies in
eight countries and successfully helped them
raise their fuel economy.
It was followed this 2008 with a Shell FuelSave
Challenge which is an educational campaign for
both professional and private motorists alike
with the aim of helping them improve their fuel
economy by adapting fuel-saving driving habits
and by using Shell’s Fuel Economy products.
The Philippine experience of the Fuel Economy
Fleet Study revealed drivers realising significant
savings from their fuel consumption by using
Shell Fuel Economy products alongside the
application of fuel-efficient driving practices.
Let us take a peek at the stories of ordinary people
who have been helped by the Shell Fuel Economy
programme.
Twenty-nine year old Julius Carillo is a sales
agent from Banilad, Cebu City. He starts his
day by waking up at 5:30am and leaves for
work at 7:00am, just before the traffic begins.
His job requires him to constantly drive
around, thus consuming greater amounts of
22 SHELL WORLD PHILIPPINES
fuel. With a limited monthly gas allowance,
his goal was to realise fuel savings.
With 14.2% fuel savings, Julius recounts,
“Shell’s Fuel Economy programme has proven
to be a big financial help. It saved me fuel,
money, and precious time.” By applying the
Shell Fuel Tipid (Save) Tips, Julius developed
better driving habits and realised savings on fuel
and money, which he now uses for other living
expenses. It has also enabled him to set aside
money for his wedding.
“It is no doubt that I increased my weekly mileage
using Shell fuels and applying better driving
practices,” says Julius.
Working as area salesman based in Cagayan de
Oro, Rey Montante, 39, is a devoted husband
and father of two, ages 14 and 16. Every
morning, Rey prays the rosary with his wife at
4:30am before having breakfast with his
children. He leaves for work at 7:30am, taking
two rides to the city proper. To save on
transportation expenses, Rey waits for a service
vehicle if there is nothing urgent for work.
Being a family man, he understands the
importance of savings. “Using Shell fuels
helps me a lot. The truck that I am driving
runs well at less fuel cost by applying fuel
driving tips I learned from the seminar. Even
after the programme, we still use Shell fuels
and apply the tips. In fact, the driving tips are
posted on my dashboard to remind me to drive
competently,” Rey enthuses. He achieved
10.6% savings on fuel consumption.
By following Shell’s simple driving tips, Jozar
Laroa, 42, saved 10.6% on fuel consumption.
With his children attending private
schools in Cebu, Jozar seizes every
opportunity to save money, and the
savings from his fuel consumption means
a lot to him. “Since I started using Shell
fuel and applied better driving habits, I
have been able to set aside money for my
children’s expenses,” Jozar declares.
They are just three of the millions of motorists
who have realised greater savings from less
fuel consumption. Overall, the Philippine
results showed 59% improvement on
motorists’ fuel consumption, with the top 10
drivers in the study posting improved fuel
economy at an average of 15%. Recent results
from the Q2-2008 Global Consumer Tracker,
a quarterly consumer research that measures
brand health and business performance in the
retail space, revealed that 73% of motorists
(or 7 out of 10) believe Shell provides fuels
that give better fuel economy, while 100% of
respondents who use Shell Fuel Economy
fuels say that this either meets or exceeds their
expectations on fuel economy.
The 2007 Shell Fuel Economy Fleet Study
and the 2008 FuelSave Challenge are
initiatives that form part of Shell’s vision to
help motorists save 10% or more of their
fuel consumption. These are centered
around education and training of motorists
along Fuel Tipid Tips that will help them
change the way they drive, so that together
with using the right fuels (Shell fuels), they
can potentially save 10% on their fuel
consumption. The FuelSave Challenge
specifically, involves 164 motorists in a
challenge to go further by improving one’s
driving habits over a month-long period to
promote better everyday fuel economy.
Through the challenge, Shell wants to show
that ordinary people can also be champions
with these positive changes on one’s
motoring lifestyle.
Shell Fuels Brand Manager Carl Posadas says,
“We at Shell believe that bringing our
motorists further is not just a mantra that we
apply on the road, but something that extends
to life as well. By driving more efficiently, we
not only help you go further on the road, but
hopefully the savings that our motorists get
using the new Fuel Economy formula can be
used for other things to help improve their
lives, too.”
With all that Shell is doing for millions of
motorists around the globe, its fuel products
can only further boost engine performance of
vehicles. But beyond engine performance,
Shell’s real savings are hinged on better driving
habits that can take anyone to greater lengths at
less fuel cost.
Eric concludes, “Improving fuel efficiency
is going beyond technical innovation in
fuels development. Considering the wider
picture, we improve people’s lives by
helping to make mobility more affordable.
Moreover, sustainable mobility is an
important aspect since helping motorists
use less fuel through our fuel economy
formulas and efficient driving habits bring
better air quality through lesser pollution
and helps address climate change through
lesser CO 2 emissions.” SWP
Shell FuelSave Challenge participants learn more about fuel-efficient
driving habits.
Up ahead for more fuel savings
As Shell states it, “We find more ways to help
motorists go further.”
Shell is committed to play its role in meeting
today’s energy challenge by helping the Filipino
motorist save fuel and use energy in a more
sustainable way.
Julius Carillo
Rey Montante
I have a great motivation
for doing something to
make our world a better
place and I believe by
looking into cleaner fuels
and air quality in Asia
I can make a difference
through my expertise.”
A DISCIPLE OF
FUELS TECHNOLOGY
Meet “Dr. Fuels” - Eric Holthusen, Shell Global Solutions Fuels
Technology Team Manager for Asia Pacific and the Middle East
In the Shell community, Eric is also known
as “Dr. Fuels”. It is his expertise in fuels
technology that makes him a credible
source of information on new developments
in fuels research and testing.
Based in Kaula Lumpur, Eric serves as the
Fuels Technology Manager for Shell
Global Solutions, which provides
“complete solutions” in technology and
management areas to the various Shell
businesses worldwide.
Eric’s career with Shell started in 1989
when he became Product Development
Engineer of Shell in Hamburg, Germany,
after having worked in the automotive
industry on diesel engine development.
In the early 90’s, Eric worked on lubricants
development in Shell’s research centre in
Grand Couronne, France, and was
involved in F1 fuels and lubricants
development. Then from the mid 90s to
2001, he worked in various functions as
he led Shell’s product testing activities for
fuels and lubricants in Hamburg,
ultimately managing three departments -engine, emission and road testing.
In 2001, Eric took on the role of managing
director for Shell Research Eastern in
Singapore and Fuels Technology
Manager for the region, before moving
to Shell Asia Pacific Service Centre in
Kuala Lumpur to lead the regional Fuels
Technology Group in 2004.
Last July, Eric went to Manila to give a
talk to participants of the Shell FuelSave
Challenge. He was also a speaker in
the recently held forum on Euro IV and
the Philippine Biofuels Law at the Sofitel
Plaza Manila, where he gave a
presentation on the impact of changing
specifications on gasoline and diesel
performance on the environment. Eric
emphasised that Shell is committed to
developing cleaner fuels that will help
lower carbon dioxide emissions in the
transport sector with the aim of meeting
the energy challenge in environmentally
and socially responsible ways.
“I have a great motivation for doing
something to make our world a better
place and I believe by looking into
cleaner fuels and air quality in Asia I can
make a difference through my expertise,”
says the 46-year old Shell executive.
Eric holds a masters degree in Automotive
Engineering from Hamburg University of
Applied Sciences. In his career as a fuels
technology expert, he has accomplished
numerous publications on the subject of
future and alternative fuels.
Eric met his wife Andrea while working
for Shell. “She is a Chemist and shares
my passion for sports. While I was still
(car) racing myself, she spent hours at
the pit-wall taking lab-times and
holding up pit-boards,” shares Eric,
who says he has since given up active
motor sports and now spends more
time on the golf course. He and his wife
also enjoy long distance running and
have competed in many marathons
together. (Jun Jay Jimenez)
SHELL WORLD PHILIPPINES 23
FEATURE
SUPPORTING THE BUSINESS
TRANSFORMATION
ORGANISATION DESIGN LEAD FOR THE PHILIPPINES ALEX MERANO LEADS
IN SHAPING THE COUNTRY’S FUTURE DOWNSTREAM STRUCTURE
To make the changes in our
business processes sustainable,
we need to have an appropriate
organisation to do the changes.”
By JOCELYN DIANA-DIGA
Photos by EDISON SIA
S
Preparing for the journey
Before he took on the OD Lead role, Alex was
exposed to various jobs in Shell Retail
Philippines, with aspects on standards
development, human resources, training,
competency and learning. For Alex, his interface
with multi-cultural individuals in the Shell
business and his exposure to global scenarios
during his stint in Retail prepared him
adequately for his current job.
“The OD Reps are the ones who have a
thorough understanding of their business,
including the required jobs, roles, and
functions needed, and these we align with the
OD process globally,” he states.
With Shell Philippines and Shell Indonesia
now the focus of attention as both countries
move closer to its scheduled Downstream-One
Go Live date, July 1, 2009, Alex is once again
working with his global counterparts who are
lending a hand along this crucial change
journey. They are working together to ensure
that the OD process is completed, all OD
stakeholders are involved, all sign-offs are
secured, the essential database tool is used
accurately and completed in time, and all
“To make the changes in our business design conflicts are resolved.
processes sustainable, we need to have an
appropriate organisation to do the changes,” Being the local lead for OD, Alex’s primary
Alex points out.
responsibility is to guarantee that a consistent OD
approach based on the Global Standard
According to Alex, the core of the changes Organisation Model or GSOM is properly
in the organisational structure is communicated to the OD Network, which will
the organisation’s alignment carry out the target organisation design for the
with the implementation of impacted Downstream businesses. The OD
new IT systems (GSAP and Network is a group of people called OD
CAP), which will support Representatives, who come from the various Shell
the new business processes Downstream Classes of Business or Functions.
of the Downstream-One
programme.
“I have a major stake in driving local Organisation
Design and Role Mapping to ensure that the
“Globally, Shell is businesses understand and own the design
now engaged in deliverables required for local implementation
various
in their respective businesses in line with the
streamlining
implementation of GSAP/Streamline towards
activities in line achieving a successful Downstream-One
with
the journey for the Philippines,” shares Alex.
DownstreamOne programme Steering the OD Network
and these activities With an OD process and system in place, Alex
are made possible serves as a guide to the OD Representatives,
through
these providing them with templates and tools to
Alex Merano
new IT systems,” ensure that they will be able to deliver the future
says Alex.
organisation according to the guidelines.
“This is the only tool which we will use come
GSAP Go Live. The RMTDB tool is useful
for the training requirements of staff since it
clearly identifies who are required to attend
the GSAP training. Roles are being inputted
in the database, which will generate a report
on what kind of training is required for the
person,” he explains.
hell’s Downstream-One programme
is all about having simple, standard
processes for increased efficiency,
thereby
leading
to
better
competitiveness and ultimately,
more satisfied customers. Organisation
Design (OD) is the process of transitioning
the current organisation to conform to the
requirements of the new and better business
processes and structures.
OD Lead for the Philippines Alex Merano
talks to Shell World Philippines about his
role as one of the members of the Change
& Engage – Country Programme
Management Philippines Team for
Downstream-One Philippines. Alex leads
the local OD Team in implementing the
complex and critical role of mapping
activities for the future design of Shell’s
Downstream organisation.
24 SHELL WORLD PHILIPPINES
Aside from regular communication with the OD
Network, Alex ensures that all the data required for
people management will be entered into the Role
Mapping and Training Database (RMTDB).
Alex is pleased to note that the OD Network is
right on track to deliver the target for local OD
implementation. Despite various challenges
such as constraints in time, Alex says the OD
Network is doing well. Last August 2008, the
role-to-job mapping was already completed.
Now they prepare for OD Stage Gate, an
activity that will sign-off the new organisational
structure, based on the efforts of the OD team.
This involves business managers presenting the
new organisation to a panel of high-ranking
Shell leaders.
“Getting through the Stage Gate was
important because only then could activities
leading to transitioning the old organisation
to the new organisation take its course,” says
Alex of this milestone.
This October, the Philippines DownstreamOne project team is gearing up for yet another
milestone in this historic change journey -the Business Readiness Review, which will
assess the country’s deployment progress and
highlight areas that pose as a potential risk to
a successful implementation.
Asked how all of these changes will
impact staff in the future organisation,
Alex says that the new systems and
processes will pave the way for simpler ways of working
that will properly assign administrative tasks, reduce
repetition, and cut duplication of efforts and errors. He is
certain that the new organisation will be totally matched
with what the business requires.
“ With the role-to-job mapping in place, jobs will be
better identified and will have a clear line of sight to
business deliverables. As a result, we will add more
interface and value to our customers by spending more
time with them,” Alex concludes. SWP
The OD Network
Integral to the Organisation Design (OD) process is the participation
of the OD Network. This is a group of people, called OD
Representatives or OD Reps, who come from the various Classes of
Business or Functions (CoB/F) and do the very important job of
designing the new Go-Live organisation, based on the Global
Standard Organisation Model (GSOM), under the guidance of the
respective CoB/F Global OD leads.
Our Philippine OD network is composed of the following OD Reps:
Cris de Castro - Bitumen
Norris Alcantara - Fuels
Harvey Casino - Lubes
Alvin Panuncialman - Marine
Ed Magpantay – Contracts and Procurement
Rudy Jamora - Distribution
Ricky Mariano - Finance
Edison Sia - IT
Gerald Quelapio – Lubricants Supply Chain
Network
The Organisation Design
Bing Pingul - Manufacturing
Jojo Gesmundo - Retail
Melinda Sarmiento – Shell Shared Service Centre-Customer
Service Centre
Jojie Serrato – Supply
*For Aviation, the OD Rep is a regional staff based in Australia
The OD process is all about designing the organisation “to be”, that will, in
turn, be required to execute the ”to be” processes. It involves aligning the
organisation to meet the requirements of the new simple, standardised
processes and the new systems or IT tools that make all these new processes
possible under the Downstream-One Programme.
Some businesses or functions already have current setups that are very close
to the “to be” organisation, for which changes will be minimal. Others,
however, have quite a bit of work ahead in terms of getting aligned to the
GSOM. OD Reps also need to take into account the local conditions,
requirements and legislation in designing the new roles that will eventually
form the new jobs in the new organisation. [Suiee Suarez]
SHELL WORLD PHILIPPINES 25
SD IN ACTION
MAKING GOOD
BUSINESS
By MYLENE MENDOZA-SANTOS
“W
hat is SD?” asked one
gentleman. “Sales and
Distribution?”
chuckled the other in
a teasing way.
I couldn’t help but overhear the elevator
conversation exchanged between two new
hires about to attend one of the Shell
onboarding sessions scheduled that day. The
session was on Sustainable Development (SD)
and I was about to give it. We came inside the
room, both gents with flushed faces perhaps
upon realising that the SME (Subject Matter
Expert or resource, that’s me) may have found
the conversation offensive, provocative or
simply amusing. I, however, found it to be
neither of these.
In my previous role as SD Manager for
Pilipinas Shell Petroleum Corporation
(PSPC), I’ve had the rare privilege of
engaging various individuals and groups on
Shell’s SD commitment. Different people
have varying levels of knowledge and
appreciation of this commitment, and the
engagements proved to be always rich with
opportunities for learning, humbling one’s
self, and more importantly, for affirming
the merits of the company’s commitment.
Since I took on the role in 2002, I have played
witness to how the Shell companies in the
Philippines have moved on from simple
awareness to a deeper internalisation of the SD
mindset, operationalising or translating the
commitment to actions on the ground. Some
26 SHELL WORLD PHILIPPINES
liken the transition towards achieving SD to a
journey, and one wherein challenges and
opportunities lie ahead.
The commitment we made globally in 1997
was based on the definition of SD provided by
the 1987 Report by the Brundtland
Commission.
It
defined
sustainable
development in inspiring but very openended terms as ‘development that meets the
needs of the present without compromising
the ability of future generations to meet their
own needs’. As a company, we didn’t know
exactly what contributing to SD would require
from us in practice at that time. We started on
a journey based on a core belief that business,
for the sake of its own future success, had an
essential role to play in meeting society’s needs
in more socially and environmentally
responsible ways.
More than a decade after, we’re still
learning about the challenges and
opportunities of contributing to SD as a
global energy and petrochemicals
company. But we now have a
clearer
picture
of
what
contributing to SD means for us,
what it will take in terms of
systems, processes and learning,
and where the business value for
us lies.
For us in Shell, contributing to
sustainable development means
helping meet the world’s growing
need for energy in economically,
socially and environmentally responsible ways.
And we do so in a number of ways, from
managing our operational impacts to providing
benefits for a number of people.
Our contribution to SD includes a
commitment to finding and delivering
products and services that meet people’s
energy demands in order to help them
prosper and live comfortably. The
trailblazing Malampaya Deep Water Gasto-Power project represents the largest
and most significant industrial investment
in the history of the Philippines. It s t a r t e d
t h e c o u n t r y’s n a t u r a l g a s i n d u s t r y t h a t
s u p p l i e s c l e a n , n a t u r a l g a s t o p r ov i d e
2 , 7 0 0 m e g a w a t t s o f p ow e r f o r 2 0 y e a r s
s t a r t i n g Ja n u a r y 2 0 0 2 , m e e t i n g 3 0 %
of
the
whole
c o u n t r y’s
p ow e r
g e n e r a t i o n re q u i re m e n t s .
By offering cleaner products like natural
gas, as well as better biofuels, petrol, diesel
and lubricants that help customers drive
Personally, being able to help
make a contribution to making
a difference in the lives of fellow
Filipinos has been for me, the most
enriching experience.
more efficiently, we also help reduce energy
impacts on the environment. In the
Philippines, we introduced Shell Fuel
Economy formula and driver training and
information campaigns to help drivers
improve fuel efficiency. We also supported
the Philippine government’s bio-fuels
programme with the launch of our E10 and
bio-diesel products. This enables motorists
to promote the environment through use of
our products, while reducing oil imports
and helping develop the economy.
Our SD perspective directs us to sustain
engagements and partnerships with our
stakeholders and society. These help us
understand and better manage the full range
of our impacts – positive and negative – that
our operations have on society and the
environment today. We are able to promote
‘no harm to our employees and neighbours’ by
ensuring a healthy and safe operation. We also
looked at ways to reduce the environmental
impact of our operations by lowering our
emissions, including greenhouse gases,
reducing our impact on biodiversity, and using
less energy, water and other natural resources.
Social performance defines how we reduce
disruptive impacts from our activities and
generate benefits for communities, being a good
neighbour in all areas where we operate. We
continue to ensure that we minimise disruptions
and enable benefits through such areas as
employment, procurement and social
investments to communities.
Down the road on our journey since
1997, our conviction is stronger that
contributing to SD is not only a right
thing to do, but it also makes a lot of
good business sense.
Being a responsible company allows us to keep
our licence to operate and grow. By listening to
our stakeholders and addressing their
expectations, we reduce the risks to our business
as we avoid chances of project delays, approval
failures or disruption to existing operations. We
believe that we are also able to attract and retain
the right people, customers and business
partners by being a responsible company.
We have also discovered that by listening
to a customer’s changing needs and by
adopting new or cleaner technologies,
we can have a stronger competitive
edge, improve operational efficiency
and reduce costs, thereby maximising
economic opportunities.
Personally, being able to help make a
contribution to making a difference in the
lives of fellow Filipinos has been for me, the
most enriching experience. We have not only
helped society develop through our products
and services, but in so many instances we
have also been able to provide education,
healthcare, livelihood through the Pilipinas
Shell Foundation and other means to help
people better their lives. It gives me personal
happiness to see how much our volunteer
work has gained ground over the years, from
a handful of dedicated individuals to teams of
hundreds working together under the
sweltering heat of the sun, reforesting the La
Mesa or building houses in our Gawad
Kalinga Villages.
I will always consider the five short years
doing work in SD for Shell very well spent.
It had been an inspiring journey towards a
difficult task, one that requires the help of
so many partners working together towards
a common, noble cause. Contributing to
SD is understandably a formidable task,
and it requires a team act.
Each one has a part to play in ensuring that
the organisation remains committed and
carries on with passion, zeal and
perseverance the work that we have begun.
As society’s concerns about sustainability
continue, so will the need for us to
contribute. I believe that Shell can always
make a difference towards this end, for as
long as the rest of us remains steadfast in
our core purpose of ‘helping people make a
better world’. SWP
Mylene Mendoza-Santos was formerly the
Sustainable Development (SD) Manager for
Pilipinas Shell Petroleum Corporation (PSPC).
She writes about Shell’s commitment towards
SD and her five years of dedicated work in this
role spent with a vision of making a difference in
the lives of Filipinos. She is now head for
Downstream Communications for PSPC.
Every
quarter,
Shell
World
Philippines will feature various
initiatives of Shell companies in
the Philippines in line with its
commitment
to
sustainable
development or SD. For Shell,
contributing to SD means securing
a responsible energy future by
helping meet the world’s growing
need for energy in economically,
environmentally
and
socially
responsible ways.
SHELL WORLD PHILIPPINES 27
FEATURE
PATHS TO DEVELOPMENT:
PAVING THE WAY
FOR BICOLANOS
PSPC and PSFI put together a rehabilitation
programme tagged “Bicol Tabangan Programme”
(BTP), the goal of which was to help Bicolanos cope
with the disaster and rebuild their lives through the
conduct of skills upgrading and livelihood programmes.
By MARGAUX DIAZ-SANGUYO
and ROGER BORROMEO with DAPHNE EUSTAQUIO
There is a wave of progress
happening in the southern
province of Bicol.
Pilipinas Shell Petroleum Corporation
(PSPC), Shell Pasacao Depot, the local
government units of Pasacao in Camarines
Sur, Bicol, and Pilipinas Shell Foundation,
Inc. (PSFI) have banded together to carry out
a transformational endeavour under the name
of the “Pasacao Social Development
Programme (SDP)”. Between 2004 to 2006,
more than 900 Pasacao residents have
participated in a number of PSFI programmes,
among which are the Sanayan sa Kakayahang
Industriyal (SKIL), Triple B (Bawas Basura sa
Barangay), an ecological solid waste
management programme, Sanayan sa
Kakayahang Pangangalakal (SKP), an
enterprise skills management course, Youth
Business Camp (YBC), a micro-business
management course tailored for aspiring
young entrepreneurs, Integrated Farming BioSystem (IFBS), an organic farming training
course for farmers, Pasacao Youth Summer
Camp, and Ligtas Pasada Seminar.
When two super typhoons simultaneously
hit and devastated the Bicol Region in late
2006, PSPC, Shell Philippines Exploration
B.V. (SPEX), Shell Life Matters, and PSFI
were once again quick to aid the Bicolanos
through the conduct of relief operations
benefiting numerous families. In partnership
with local government units, industry
partners,
Bicol-based
non-government
organisations and people’s organisations,
PSPC and PSFI put together a rehabilitation
programme tagged “Bicol Tabangan
Programme” (BTP), the goal of which was to
help Bicolanos cope with the disaster and
rebuild their lives through the conduct of
skills upgrading and livelihood programmes.
BTP consists of three components - - IFBS,
SKP and SKIL. A total of 225 farmers
benefited from IFBS, 36 homemakers
benefited from SKP, and 103 youths have
been recruited to train under SKIL,
particularly in courses on welding, automotive
machine
shop,
refrigeration
and
airconditioning and electronics.
With Pasacao as one of the host communities of
Shell, another SDP programme was launched on
June 30, 2008 at the Shell Training Farm in
Bombon, Camarines
Sur to benefit Pasacao
residents.
The
programme consists of
two components, both
of which are technical
skills training courses -one on animation
conducted by the Naga
City Investment Board
(NCIB), and the other
on food and beverage
services and commercial
cooking implemented
in partnership with
Jollibee
Foods
Corporation, Jollibee
Naga City Investment Board Foundation, and STI.
MOA Signing for animation scholarship. (L-R)
(NCIB) Investment Promotion Officer Ofero O. Basbas, Naga City Mayor and
NCIB Chairman Jesse M. Robredo, PSFI Executive Director Edgardo R. Veron
Cruz, and PSPC-Distribution Social Performance Head Janot Barretto.
28 SHELL WORLD PHILIPPINES
Fifteen
animation
scholars will complete
the course in five
months under the instruction of NCIB and
the Philippine Computer Foundation
College. On the other hand, twelve Jollibee
scholars are expected to complete six months
of training at STI and render four months of
apprenticeship at Jollibee stores located in
Naga City. The programme is part of a
nationwide partnership between Jollibee,
Shell and PSFI.
Pasacao Depot Manager Dante Gandionco
says, “Although the programme will only run
for a few months, I expect that the results will
have significant impact in terms of improving
the lives of the scholars and their families.”
Asked what other assistance may be extended
to Pasacao, he discloses, “We are looking into
a catfish farming programme and the local
government of Pasacao is requesting that the
depot provide tanks and drums.”
Under Dante Gandionco’s management, the
Pasacao Depot has also conducted road and
coastal cleanup activities, and provided trash
bins to nearby communities. “I am also
planning to provide road barriers in school
zones to ensure that children are safe from road
hazards,” he adds.
Dots and lines draw a
promising future
Animation scholar Dominic Falabi, 21, has
earned a degree in Secondary Education
Major in Computer Education. He decided
to join the scholarship programme after
failing the board exam earlier this year. “It
just was not the right time for me,” he muses,
“but, I refuse to be idle so when I heard that
an animation scholarship was being offered, I
tried my luck.” He adds, “I became more
interested in the programme after I learned
that there are many employment opportunities
for animation scholars.”
As a young boy, Dominic was fond of watching
animé. “Not once did I fail to watch Naruto
(an animé show aired on television),” he recalls.
“My hands were good at sketching Naruto
characters,” the young artist claims. However, it
was not until learning about the animation
scholarship that Dominic began sketching
again. “I feel that my computer skills and my
talent in drawing combined may draw a
promising career for me in the animation
industry,” Dominic says with optimism.
Dominic Falabi successfully runs a distribution
business for over-the-counter medicines in Pasacao,
Camarines Sur.
‘Dagos Na’ (Tuloy Na) sa Jollibee
Shell-Jollibee scholar Angieline Obsequio, 22,
completed first year standing as an Aircraft
Electronics Communications student. She has
six siblings. Angie is the second eldest in the
brood. Her father is a carpenter, while her
mother is a laundry woman.
She dreams of becoming a self-supporting college
student and of taking up a business management
or an engineering course. She wants to be capable
of sending her siblings to school. “I want to help
my family build our own home,” shares Angie,
whose family currently lives with a relative.
“I enjoy cooking, which is why I decided to apply
for the scholarship,” she says. “As a young girl, I
dreamt of becoming a chef.” She has high hopes
that the scholarship will make way for her to land
gainful employment that will, in turn, enable her
to realise her aspirations one step at a time.
becoming a major tourist destination, we are
putting up a bed and breakfast service where
youth from GK villages may find gainful
employment,” he adds.
Shell companies in the Philippines Country
Chairman Edgar Chua expresses full support
for the partnership. “After putting up decent
homes, Shell asked PSFI to offer its agricultural
and industrial programmes to GK residents in
the quest of Shell and GK to build sustainable
communities. Shell takes pride and honour in
being associated with GK. We look forward to
forging similar collaborations with GK
throughout the country,” he says.
Based on figures from the National Statistics
Office, the Bicol Region, composed of the
Provinces of Camarines Norte, Camarines Sur,
Albay, Catanduanes, Masbate and Sorsogon,
Dominic also participated in the 2007 Shell
National Youth Business Camp where aspiring
young entrepreneurs were trained on basic
enterprise management skills. When asked to
prepare a business proposal, he shifted focus
from putting up a billiard house, which he
realised was too expensive, to distributing overthe-counter medicines. Dominic was able to
buy his initial stock of medicines from an aunt
who owns a pharmacy using P3,000 of start-up
capital. Today, Dominic estimates that he now
has a revolving capital of P9,000. His business
now caters to a number of sari-sari store owners
in Pasacao.
From decent homes to
sustainable livelihoods
Jollibee scholar Angie Obsequio talks about her
dreams for herself and her family during the
Leadership
Enhancement
and
Attitude
Development Workshop.
Simultaneous with the conduct of BTP, Shell
also linked up with Gawad Kalinga (GK) for the
establishment of Shell-GK communal farms in
Calabanga, Camarines Sur. On July 1, 2008,
Shell, GK, and PSFI signed a Memorandum of
Agreement to establish nine other Shell-GK
Farms and a GK Farm Institute in Iriga,
Camarines Sur. The programme will be
implemented from July 2008 to June 2010.
“I personally take pride in our Iriga Farm,” says
GK Founder Tony Meloto. “We are turning it
into a flower farm and, since the location is
registered the second highest number of poor
families in 2006, with a total of 422,278 (or
41%) of Bicol families considered to be poor.
PSFI and its partners hope that the social
development programmes managed for Bicol
residents may help stimulate progress that will
ease the poverty situation in the region.
The inspiring stories of the SDP beneficiaries
are beacons of hope that a promising future
lies ahead for community residents of Bicol.
If it can happen in Bicol, then it can
definitely happen everywhere else in the
country. SWP
SHELL WORLD PHILIPPINES 29
FEATURE
THE 2008 SHELL NATIONAL STUDENTS ART COMPETITION
TELLS VISAYAS
ART STUDENTS: “DARE!”
By MAGI NICOLAS
Youthful Day
S
tudents piled into the
session hall, partly curious,
partly unconcerned, not
fully grasping that they
were about to experience
the rare presence of a truly great
artist. Once they saw and heard him
up close – blue-eyed and patrician
yet so down-to-earth Pinoy – they
were won over.
Master painter Juvenal
Sanso is guest artist in the
2008 Shell Art Interaction
Programme. With a career
that spans decades and
continents, Sanso brings
his visual contemplations
to the Visayas for a
dialogue with fine arts
students in the region.
The Art Interaction Programme,
established by Pilipinas Shell Petroleum
Corporation (PSPC), was held at the La
Consolacion College in Bacolod City on July 3,
2008 and the University of the Philippines in the
Visayas, Iloilo City, on July 5. Fine Arts students
and students from neighbouring institutions,
local artists and educators sat down to learn from
the Master himself, Juvenal Sanso.
In Bacolod, Sanso defied lumbar strain by
crouching on stage to better hear a student asking
a question from below the platform. With his one
good ear (the other was damaged during the
Liberation), he would lean toward students in a
simple gesture, full of sincerity and generosity. At
the end of the lecture, his advice in reply to a
question about how, at a time of economic
difficulties, students can convince their parents to
allow them to pursue art: “Don’t push them…but
don’t push them away from it, please. Allow them
to be themselves.” Sensing the fervour of students
in the auditorium of La Consolacion, some as
young as high school, he said with affable
confidence: “Maybe we don’t need to push. I really
feel all this passion. Thank you for coming.”
When the session ended, Sanso graced the
ribbon-cutting ceremony of the traveling exhibit
by the Ayala Museum. “Museum in a Box”,
which will stay in Bacolod for one month,
chronicles one hundred years of Philippine art
from paintings by three of the country’s visual
arts trailblazers, titled The Pioneers of Philippine
Art: Luna, Amorsolo, Zobel.
According to Sanso, the world needs devoted
artists who will toil and toil in order to develop
their personal style and a national art.
Said Sanso, “The greatest names did not wake
up and say I will be Michelangelo. He was an
apprentice for about twenty years! The others
worked as slaves! We’re lucky to have schools...”
And yet, even as many colleges now offer courses
in art, there remains a dearth of reference
materials on leading Filipino artists from which
young talents can learn. This lack of exposure is
what the Art Interaction Programme of
Pilipinas Shell aims to change. The programme,
organised in 1994 in consultation with
Internationally acclaimed artist Juvenal Sanso is proudly claimed
by the Philippine art scene as one of it own.
30 SHELL WORLD PHILIPPINES
Festal Array
Torrid Flushes
university and college teachers to supplement
art education in the provinces, is an offshoot
of the prestigious Shell National Students Art
Competition (NSAC), currently celebrating
its 41st year. Through the years, the NSAC has
served as a barometer of the art scene, yielding
winners who have become towering figures in
Philippine art, including Sanso and National
Artists Joya, Ang Kiukok, and Bencab.
At the University of the Philippines (UP) in the
Visayas, Sanso recounted his own UP days, where
he met and became good friends with classmates
who are now also icons in art like Napoleon
Abueva, Araceli Limcaco-Dans, and Larry Alcala.
Born in Catalonia, Spain, Sanso has lived in the Philippines since age five, where his artistic
development was nurtured at the University of the Philippines and the University of Sto. Tomas.
A lifelong series of awards began in 1951 with first place wins in the oil and watercolour categories
of the Art Association of the Philippines competition and a third place win in the Shell National
Students Art Competition. Later, and across national borders, he continued to earn acclaim
for his prodigious talent and was ranked among the best in the world in the ranks of Henri
Matisse and Salvador Dali when his work was adjudged Print of the Year Award by the Cleveland
Museum of Art in the 60s. The Maestro became the subject of two book publications authored
by Alejandro Roces and Rod Paras-Peres, Ph.D.
Sanso’s father, who managed the wrought-iron
family business Arte Español, wanted him to
learn how to draw. “That’s how it started,” he
says, “Then you push hard at it to make it become
a great reality.” He learned to paint at home and
was later sent to the University of the Philippines
where he felt awkward painting in front of
people. “When I started, I was embarrassed to
paint in front of others but the urge to paint was
stronger than my embarrassment.”
Since then, Sanso’s inexhaustible output has been celebrated in several one-man exhibitions,
icluding six simultaneous shows in 1989 at Alliance Francaise, the Ayala Museum and the
Metropolitan Museum. Among his most popular works are his “poetic surrealist” pieces, where
rock-strewn landscapes glow under a silvery full moon.
Sanso understands youth art profoundly
because he has remained, as in his youth,
unbound by borders. Burdened by thoughts
Advancing Into Light
that he was turning his back on the family
business, he got on a steamer to Europe to
follow his heart/art, landing him in places of
grief, and also of grace. Between severe
financial difficulties and loneliness, and
joyful summers in Brittany with friends, the
artist not only survived the challenges of
living as an artist abroad, but he soared. He
designed fabric for Balenciaga, his “barongbarong” art led him to create opera sets in
Paris for top people in theatre, and he
learned to respect his rhythm of painting in
batches of many canvases at a time instead of
persisting in finishing one work.
Many probably know him for his dark period
of anguished recollections of war, or for his
vibrant earthscapes and extraordinary paintings
of flora but at 70-plus, he is still exploring new
‘scapes’ in art and in life: he unveiled his biggest
work to date, a mural commissioned by good
friend Henry Sy. There are countries still
unvisited and people yet unmet but already his
cup overflows: the painter received the
Presidential Medal of Merit from President
Gloria Macapagal-Arroyo, was honoured with
the Chevalier des Arts et des Lettres from
France, and was conferred the Cross of Isabela
by the Spanish King HRH Juan Carlos I for his
exemplary contribution to the arts.
Lands in Splendor
Sanso recalls the statement of the artist
Cézanne that goes something like this: “Every
time I paint… every time I pick up my brushes,
I’m risking my life.” To describe his own life,
he utters: “I dared!” The artist who worked as
bus conductor plying the Santa Ana-Quiapo
route during the Liberation says, “It is good
for the young to know that we didn’t have it
served on a silver platter. ‘Oh lucky you, you
speak six languages! Ah how lucky you are this
and that. That I had my parents who were
healthy, that I had these studies…’ I dared
leave the family business and got into a ‘stupid’
field, ‘stupid’ in the sense of the practical side...
Instead of going to the United States or
England where I spoke the language, I went to
Italy and France where I did not speak the
language at all. Zero! And I could not receive
money from home. The dare is kamikaze!”
And so the dare for students is to dare. SWP
Come and see the exhibition of the 100 Best
Entries and winners of the 41st Shell National
Students Art Competition (NSAC) at the Ayala
Museum from October 4-17, 2008. The exhibit
is open to the public. For further details, please
visit www.shell.com.ph
SHELL WORLD PHILIPPINES 31
LEGAL SPEAK
PURCHASING
REAL PROPERTY
IN THE PHILIPPINES
By ATTY. RAUL QUIROZ
Y
ou just received your Perfromance Related
Bonus (PRB) and, together with your
accumulated savings, you plan to surprise
your spouse with a property that she longed
for. It will be your first real property
acquisition and the last thing you want is your dream
house turning into a nightmare.
What are the things to look out for when buying real
properties in the Philippines? The following are some
of the factors to consider:
Title to the Property
The single most important document to verify is the
title to the property. When a seller cannot produce
the title to the property (an Original Certificate of
When a seller cannot produce the title to the property (an
Original Certificate of Title, a Transfer Certificate of Title,
or in the case of a condominium unit, a Condominium
Certificate of Title), it is best not to push through with
the purchase, unless you are into land speculation or you
personally know the owner of the property as having been
in possession of the property in the concept of an owner
for more than 30 years.
Title, a Transfer Certificate of Title, or in the case of a
condominium unit, a Condominium Certificate of
Title), it is best not to push through with the purchase,
unless you are into land speculation or you personally
know the owner of the property as having been in
possession of the property in the concept of an owner
for more than 30 years.
If the title is provided by the seller, it should be
verified with the Register of Deeds (RD) of the city
or province where the land is located. The copy in
the custody of the RD reflects all transactions
involving the land. These transactions will bind you
and will take precedence over your purchase. For
example, a mortgage or lease contract by the seller
annotated in the title before you bought the property
will be respected even if you subsequently become
32 SHELL WORLD PHILIPPINES
the owner of the land. You would therefore want the
seller to cancel these annotations in the title by paying
off his debt with a bank or terminating the lease
contract before entering into the sale.
Conversely, any transaction not registered in the title
-- a previous sale, lien, easement or encumbrance -will not bind you because you are not obliged, as
purchaser, to look beyond what is recorded in the
title. The exception to this rule is when you are
personally aware of this previous transaction. Your
knowledge is the legal equivalent of registration.
The next step is to check whether the name appearing
in the title is the same person selling the property. You
may require the seller to show proof of his identity like
a government issued identification card (driver’s
license, passport, etc.) and for him to sign the sale
document in your presence. If the seller is unable to
sign in your presence, the signature of an attorney-infact is generally sufficient but you need to confirm
whether the special power of attorney (SPA) covers
the sale of the property and the authority to accept
payment and whether the SPA remains valid (has not
expired or has not been terminated nor revoked).
If the seller is married, you should assume that the
property is jointly owned by the spouse, and you
should therefore require the spouse to sign as well.
In case the seller is a developer, you should inquire as
to whether a License to Sell has been issued by the
Housing and Land Use Regulatory Board (HLURB)
for the subdivision or condominium project.
A complicated case is when the property is in the
name of a person who is deceased, which is usually
the case when you buy property in the rural areas.
Where the property is subject of a proceeding in
court among the heirs, court authority to sell will be
required. When there is no court proceeding, all
the heirs need to sign the sale document. As buyer,
you will not be able to determine who the heirs are.
You will therefore need to require the heirs to (1)
enter into an extrajudicial settlement where they
declare themselves to be the only heirs of the
deceased, (2) have the extrajudicial settlement
published in a newspaper of general circulation, (3)
have the estate taxes paid, and (4) have the 2 year
period for other heirs to claim the property
annotated in the title. After the lapse of the 2 year
period, the other heirs can no longer go against you
for their share. But because an heir may still claim
within the 2-year period, it is prudent to withhold a
portion of the purchase price or to require a bond
from the selling heirs to cover any future claim from
the other heirs who have been excluded in the
extrajudicial settlement.
Physical Condition of the Property
Having sufficiently assured yourself that the seller
has valid title, you must also ensure that the
physical condition of the property is suitable to
your needs. If you intend to build a residential
structure, you need to check the applicable zoning
in the area. This can be found in the local
ordinance. If the land is within a subdivision, you
have to go over the Master Deed and Declaration
of Restrictions issued by the developer or the
homeowners’ association.
For possible road-widening and other projects
affecting your land, you might also have to check
with the Department of Public Works and
Highways (DPWH) or Metro Manila Development
Authority (MMDA). If the structure is near the
airport, a height limit is imposed by the Air
Transportation Office (ATO) in the area.
Needless to say, you have to inspect the land for
tenants or informal settlers. Evicting tenants or
informal settlers can take a lot of time and effort
and can be very costly.
While inspecting the property, you might as well
check if the property is prone to floods or erosion,
whether there is a boundary dispute with a
neighbour and whether there is access to utilities.
Disclosures
The best possible source of other potential issues and
problems affecting the property (boundary disputes,
back taxes, mortgages, etc.) is the seller himself. While
he may naturally be inclined to withhold information
for fear that it may lower his selling price or diminish
his chances of closing the sale, it is critical that you
elicit such information from him. If not, you can
require him to agree to representations and warranties
in the sale document. Examples of these are
representations and warranties of the seller that (1)
there are no pending or threatened claims on the
property, (2) there are no existing leases or options to
purchase, (3) seller is the lawful and beneficial owner
of, and has good and valid title to the property, and (4)
the property is free and clear of security interests,
liens, encumbrances, obligations, liabilities or burdens
in favour of third persons. The purpose of these
warranties and representations is for you to be able to
recover cost and damages in case of breach of any of
these representations and warranties.
Every quarter, Shell World
Philippines will feature at least
one legal article from the Legal
Department to tackle selected
legal issues that may be of
interest to our readers. This
section highlights one of the
ways Shell assists in upholding
the rights of its employees in
accordance with the Code of
Conduct and Shell General
Business Principles.
Having concluded a due diligence on the property,
you are now ready to acquire the property for your
spouse. Your next concern, however, will be how to
explain to your spouse, when asked what a PRB is.
That would be subject of a separate discussion in
family law on “legal separation.” SWP
Author Atty. Raul Quiroz is a graduate of law and civil
engineering from the University of the Philippines.
He was formerly the head of the legal department of
Rockwell Land Corporation. He is happily married
and has a 10-year old daughter.
Real Property Taxes
Although not as important, a quick visit to
the City or Municipal Treasurer should be
made to check for any unpaid real property
taxes. If there are any unpaid taxes, the
amount can simply be deducted from the
purchase price.
Disclaimer: The comments and opinions contained in this article are not exhaustive and
are not intended to constitute legal advice or as substitute for the services of a lawyer.
SHELL WORLD PHILIPPINES 33
Raising awareness on
climate change
COUNTRY
ROUND-UP
The implications of climate change, its risk factors and mitigation
measures were the subject of the recently concluded Ateneo de Manila
Environmental Leadership Forum “Perfect Storms: What should the
Philippines do about climate change?”
Department of Energy Secretary Angelo T. Reyes, members of the
academe, students, industry leaders, non-government organisations,
media and local government representatives attended the forum at
the Leong Hall in Ateneo de Manila University in Quezon City.
Staff volunteers lend a helping hand
Almost 200 staff of Shell companies in the Philippines (SciP) rose up early morning of
Saturday to board buses bound for Tabangao, Batangas, to join the capacity-building
activity of providing homes to the less fortunate in the Shell-Gawad Kalinga (GK) Build
2008. A large number of participants were staff from the Shell Shared Service Centre
Manila who joined the build activity straight from their night shift.
SciP Country Chairman Edgar Chua was among the Shell staff builders who passionately
lent a hand during the Shell GK Build.
“Natutuwa ako at ang aking mga kasamahan sa Shell ay naglaan ng kanilang
napakahalagang araw para makapunta dito. Ako ay lubus-lubos na nagpapasalamat at
nagsasabi na ipinagmamalaki ko kayo at sana ay ipagpatuloy natin ito, maging isang
adhikain natin ito na ang kailangan natin ay magtulung-tulong upang mapabuti ang
ating bayan. (I’m glad that my colleagues from Shell dedicated this important day to
be here. I am very grateful and I am truly proud of you and I hope that we will continue
this endeavour and work together for the betterment of our country).”
Shell Tabangao Refinery General Manager Rebecca Alivio led the refinery staff who were
in full force to participate in the build event. GK officials, led by GK National Productivity
Head Marco Flores, were thankful and humbled for the enduring support that Shell has
given to GK. Following the build activity, Shell and GK officials led the awarding of
houses to family beneficiaries.
Every GK Build participated in by Shell is not only a manifestation of the company’s
commitment to Sustainable Development but a tangible investment for future.
[Clara Antonette Eser]
Villanueva Team aids in oil spill
On June 20, M/V B&E Tres was discharging soybean meal
at the Philippine Sinter Corporation facility in Villanueva
when heavy rains brought by the onset of Typhoon Frank
began to pour. The rainfall caused used oil from the vessel’s
drain boxes to spill to the main deck and eventually overflow
into the sea.
Unable to control the spill, the port facility called on the
Villanueva Plant in Cagayan De Oro to assist in the spill
containment and recovery. Only seven minutes after the
call, Shell LPG & Bitumen staff arrived on site and
deployed the sorbent booms in the assessed direction of
the spill. The coordinated efforts of the team enabled the
recovery of 20 drums of used oil and complete mop up
operations within 40 minutes after the call.
The speedy response of the Villanueva team during this
incident further highlights Shell’s commitment to Health,
Safety, Security & Environment (HSSE), particularly in
protecting the environment. [John Mark Pallugna]
Project Better World brings smiles to children in PGH
Project Better World (PBW) Philippines recently turned one
sunny Saturday morning into a fun-filled and magical
experience for child patients, mostly battling cancer, of the
Philippine General Hospital (PGH) Pediatrics Ward.
these, assorted goodies from the SPEX and SSSC Manila
donation drive were given away during the raffle draw. The
kids were likewise surprised to see a fast-food mascot who
graced the event and performed dance numbers.
Dubbed “Summer Smiles: the PGH Pedia Ward Visit 2008”,
the activity was held on June 14, 2008 and participated in by
volunteers from Shell Philippines Exploration B.V. (SPEX)
and Shell Shared Service Centre (SSSC)-Manila.
The experience had been equally enriching and fulfilling for the
PBW volunteers as they reflected with deeper appreciation their
blessings and a new found contentment in sharing themselves
with other people, specially the ones in need. Sustainable
Development Manager Chito Maniago, who served as the event
host, and PBW Head JB Salvador imparted words of
encouragement and a ray of hope for the struggling patients. The
priceless smiles in the faces of the kids brought by this activity
shall indeed never be forgotten. [Bernadette Villanueva]
Highlights of the ward visit were the balloon twisting activity
and a magic show capped by a feast among the child patients.
PBW volunteers also gave gifts like toys, colouring books,
crayons, notebooks, pens and candies to the kids. Aside from
34 SHELL WORLD PHILIPPINES
Nobel Peace Prize awardee Fr. Jose Villarin, SJ-Ph.D. of Xavier
University, Dr. Antonio La Viña-Ph.D. of the Ateneo School of
Government, and Antonia Yulo-Loyzaga of the Manila Observatory,
presented the issues and implications of climate change for the country,
its impact on the poor and other vulnerable populations and sectors,
and the crucial role of the various sectors -- including the national and
local government, business and industry, academe and civil society -in mitigating the impact of climate change.
Shell companies in
the
Philippines
Country Chairman
Edgar Chua spoke
about
Shell’s
response to climate
change as reactor
from
the
oil
industry sector.
According
to
reports, the energy
sector contributes
almost 60% of the
country’s
CO 2
emissions. Chua
cited that policy
approaches should
include “cap and
trade” systems for
large
stationary
Fr. Jose Villarin
emissions sources
such as power
stations, and industrial facilities; clear incentives for carbon
capture and storage or CCS; and financial incentives from
governments to encourage research, discovery and development of
new technologies.
To manage its CO2, Shell will increase the efficiency of its operations,
establish substantial capability in CCS, continue research and develop
technologies that increase efficiency and reduce emissions in
hydrocarbon production, and help manage energy demand by growing
the market for innovative and high-efficiency products and services.
In closing, Chua quoted Royal Dutch Shell plc Chief Executive Jeroen
van der Veer’s statement on Shell’s approach to climate change: “For us,
as a company, the scientific debate about climate change is over. The
debate now is about what we can do about it. Businesses, like ours, should
turn CO2 management into business opportunity and lead the search for
responsible ways to manage CO2, use energy more efficiently and provide
the extra energy the world needs to grow. But that also requires concerted
action by governments to create the long-term, market-based policies
needed to make it worthwhile to invest in energy efficiency, CO2
mitigation and lower carbon fuels. With fossil fuels use and CO2 levels
continuing to grow fast, there is no time to lose.” [Jo Diana-Diga]
Lapus Depot Manager Ric Sobredilla distributes aid to Typhoon Frank victims.
Shell Typhoon Frank
Donation Drive gathers
wide support
The onslaught of Typhoon Frank ravaged provinces and
municipalities in the country, wreaking devastation in the
hard hit central Philippines, leaving many areas inundated
and fellow countrymen homeless and missing.
In response to the nationwide appeal for help for the typhoon
victims, Shell companies in the Philippines (SciP) launched
the Typhoon Frank donation drive for monetary and in-kind
contributions. An appeal to the public through “A Call for
Help” advertisement was published in major newspapers
that listed Shell stations in Metro Cebu, Bacolod, Iloilo,
Roxas, and Metro Manila as drop off points for relief goods
through the generous assistance of the Association of
Pilipinas Shell Dealers, Incorporated (APSDI). The Pilipinas
Shell Foundation and the Malampaya Foundation, including
educational institutions like Saint Pedro Poveda College and
De La Salle Bacolod, the Archdiocese of Jaro, and the Shell
depots in Iloilo and Culasi, also served as channels for
accepting donations during the drive.
Overwhelming support also poured in from staff from
different Shell sites including staff posted overseas. Likewise,
motorists and Shell patrons supported the donation drive.
SciP partnered with the Corporate Network for Disaster
Response (CNDR), ABS-CBN’s Sagip Kapamilya, GMA
7’s Kapuso Foundation, and AIR21 for the distribution of
relief goods in areas hardest hit by the typhoon and in
evacuation centres.
In a simple handover ceremony held at the Rockwell Club,
Pilipinas Shell Vice President for Communications Roberto
Kanapi and Sustainable Development Manager Chito
Maniago turned over the Typhoon Frank cheque donations
to ABS-CBN Foundation Managing Director Gina Lopez
and CNDR Chairperson Albert Lim. Meanwhile, Shell
companies in the Philippines Country Chairman Edgar
Chua and Pilipinas Shell Foundation Executive Director
Edgar Veron-Cruz handed over the cheque donation to
GMA Kapuso Foundation Executive Director Manuel dela
Fuente, Jr. and CNDR Chairperson Albert Lim. The turnover
ceremonies were held on June 30 and July 1, 2008 respectively.
[Jo Diana-Diga/Jun Jay Jimenez]
SHELL WORLD PHILIPPINES 35
FEATURE
Shell deploys
Pilipinas Shell
artificial reefs in
Foundation, Inc.
Tabangao, Batangas
mentors Isuzu
employees on
entrepreneurship
Pilpinas Shell Foundation, Inc. (PSFI), the social investment arm
of Pilipinas Shell Petroleum Corporation, entered into a training
partnership with Isuzu Philippines Corporation (IPC) through a
memorandum of agreement signed on August 8, 2008 at Shell
House in Makati City.
The eight-month programme, dubbed as “Isuzu Special
Programme on Entrepreneurship for Employee Dependents”
or I-SPEED, is designed to augment the household income of
IPC employees by providing livelihood training for household
members and dependents. PSFI’s role will include training of
participants on entrepreneurship as well as post-training
assistance like proposal evaluation, loan assistance and
monitoring of established businesses.
The partnership aims to increase the income-generating
capacity of families of IPC employees through training on
entrepreneurship and provision of financial assistance to
support their identified businesses.
I-SPEED was established by Chain Reaction, an events
management and training company tasked to manage the
program for IPC.
In support to the preservation and
enhancement of our natural resources,
Shell Tabangao Refinery and the Batangas
Coastal
Resources
Management
Foundation (BCRMF), deployed two
(2) artificial reef (AR) in Barangay
Tabangao Aplaya, Batangas City located
along the Batangas Bay.
The project, sponsored by Pilipinas Shell
Petroleum
Corporation
Tabangao
Refinery, and implemented by BCRMF
and University of Batangas, includes the
formation of a community core group,
implementation
of
information,
education and communication (IEC)
campaigns, construction and deployment
of artificial reefs, monitoring, process
documentation and evaluation.
The Shell Artificial Reefs were
deployed along Batangas Bay,
Barangay Tabangao Aplaya, Batangas
City after the sites were identified in
the Rapid Appraisal and Profiling
Study conducted by BCRMF-UB last
Sealing the deal with a handshake were (from left) IPC General
Administration Department Manager Arnel Sumagui, PSFI
Program Manager Pamela Castro, PSFI Executive Director Edgar
Veron-Cruz, IPC Human Resources Manager Vanessa Torres,
Chain Reaction General Manager Albert Aragon, IPC Workers
Union President Dick Alaba, IPC Employee Multi-Purpose
Cooperative Chairman Allan Samarista, and IPC Vice President
for Administration Tomoki Umeda. [Jun Jay G. Jimenez]
The Distribution Team participated in
the Barangay initiative of Cleaning
Paliko Creek located along Barangay
Buli and Cupang on July 17, 2008.
The creek clean-up was done to further
raise awareness among those who are
contributors in the illegal disposal of
garbage along the creek. Other
sustainable development initiatives that
were implemented in the past were the
provision of trash bins along the creek
36 SHELL WORLD PHILIPPINES
December 2007. Each artificial reef
deployment consisted of 55 concrete
blocks arranged in pyramidal
configuration.
The reefs are
envisioned to be a fish and marine
habitat within twenty hours (24) after
its deployment.
Pilipinas Shell Refinery General
Manager and current BCRMF Vice
President Rebecca Alivio said that: “The
Artificial Reef project is part of Shell’s
commitment to uplift the economic
status of the coastal community and
environmental stewardship”. The
restoration programme aims to
contribute to the revitalisation of coastal
marine resources along the community
where Shell operates. It also aims to
address the needs of marginal fishermen
and support in the administration of
the refinery’s exclusion zone, as
mandated by the International Ship and
Port Facility Security Code (ISPS
Code).
[Jigs Macatangay & Noel
Mendoza, BCRMF Coordinator]
Distribution
staff help
clean creek
in Sucat
MELODIES OF NATURE:
PALAWENOS SING
FOR THE
ENVIRONMENT
By NATS FRIALDE
D
uring the Baragatan sa Palawan 2007 festivities in Puerto Princesa, Palaweños
were given the opportunity to showcase their musical talents with songs dedicated
to the environment. Known as the Last Frontier, Palawan has been fighting to keep
this title the past decades with solid determination, despite being confronted with
countless and seemingly insurmountable challenges. To help increase awareness of the
importance of playing a role in saving one’s environment, the contest was born.
Dubbed “Awitan sa Palawan: Mga Himig Pangkalikasan (Songs of Palawan: the Melodies of
Nature)”, the contest was conceived by Shell Philippines Exploration B.V. (SPEX) together
with the Palawan Environment and Natural Resources Office of the provincial government.
The result: a commemorative album collection of rock, pop, indigenous and non-traditional sounds
-- all singing hymns for the environment and love for country, delivering a compelling message that
environmental protection is everyone’s responsibility.
Launched in June 2008, the album features original compositions of the top ten winning tracks by
ten local Palaweño artists--the winning first-placer song beating a strong message against illegal
poachers who inexorably abuse Palawan’s seas. “I want to shout a wake up call for the people to watch
over and defend it from these abusers,” first prize winner Sanilyn Gianan said.
Masterfully illustrating each of the 10 songs using watercolor was a local Palaweño artist/painter by
the name of (late) Noe Tio. Moreover, the album was aligned with its environmental concept having
used recycled paper as cover and leaves of the album.
“The whole concept is aimed at contributing to the preservation of Palawan’s environment in
partnership with the local government. What better way to increase awareness than through
music which all Filipinos are lovers of?” Shell Philippines Exploration Communications
Manager Karen Agabin stated.
Other composers featured in the album were Felicito Asutilla, Rolly Buesa, Lyle Coruña, Chona
Estrobo, Lauro Magnaye, Ariel Miranda, Dexter Palay, Raul Rizada and Amie Villanueva. SWP
Panawagan
(Earth’s Call)
Buhay at Hininga
(Life and Breath)
WIN a copy of the Awitan sa Palawan: Mga
Himig Pangkalikasan album by answering
all three questions below correctly. First 30
correct answers wins. Email your answers
to [email protected]. Winners will
be notified by email.
Questions:
1.Name the two (2) natural UNESCO
World Heritage Sites found in Palawan.
2.Where in Palawan is the country’s
biggest game preserve, wildlife sanctuary
of exotic African animals and Palawan’s
endangered endemic animals located?
3.Palawan is also known as the Philippines’
_________ ___________.
Kalikasan ang Yaman, Kalikasan ang Buhay
(Nature: Our Wealth and Life)
and regular collection of garbage by
close coordination of barangay officials
with the Muntinlupa municipal.
Refresher training on the Waste
Management Programme (i.e., waste
segregation, re-use and recycle) will be
delivered by Buli-Sucat Depot Manager
Lito Lazaro. Other participants in this
event
were
Amcor Technology
Philippines, Urathex, Corinthians,
Barangay Buli and Cupang officials and
volunteers. [Lito Lazaro]
SHELL WORLD PHILIPPINES 37
T
his year, the 2008 Diversity & Inclusion (D&I) Week was
celebrated on the month of July. The event was done quite early
compared to last year’s celebration, but with the same energy,
commitment and passion that has made it a much-awaited
celebration for the past 6 years.
“Coming up with a theme this year was actually a challenge. Every
year, we always aim to express the D&I vision and after having a
theme last year of ‘D&I in our DNA’, we thought we needed something
that will depict the next step in our journey,” shares Reggie Lejano,
Country D&I Focal Point.
The theme this year…
…represents the importance and outcome of having people feel
involved, respected and connected. If each of us embodies the
principles of D&I, surely, everyone will be happy and proud to be
part of a company like Shell. It would feel good to be surrounded
by people who respect and value you – be it for your differences,
skills or talents.
What makes each D & I Week celebration a resounding success is the
opportunity D & I Week presents for everyone in Shell companies in the
Philippines to come together and participate in such fun-filled activities
that help foster appreciation of each one in the organisation.
“I remember being asked how we can relate all these fun activities with
the principles of D&I. Personally, for me, these activities allow every
individual in Shell to unleash their talents and capabilities beyond their
normal day-to-day work, and this builds courage and confidence along
the way,” Lejano explains.
She adds, “Deeper than that are the values we try to promote by
ensuring that all are given the chance to participate - our contract
staff, our messengers, our guards -- everyone. Our guidelines for the
activities, for example, have been drafted to ensure that participants
are from a diverse team, since this fosters creativity and consequently
better results. In addition, these activities have promoted the building
of stronger relationships within the team and within Shell companies
in the Philippines.
Diversity & Inclusion remains as a strategic focus and a business
enabler for Shell and embedding the D&I values and behaviours will
be essential for the long-term health of the company.
“In the end, what is important to remember in this D&I journey of ours
is to demonstrate the right behaviours, whether it be in our day-to-day
work or in any other activity. Involve, respect, and value everyone –
model that desired behaviour!” says Lejano.
It may be a long journey but if everyone continues to take that
D&I ownership and commitment, surely we can achieve and make
that difference.
Watch for more D&I events! SWP
38 SHELL WORLD PHILIPPINES
SHELL WORLD PHILIPPINES 39
40 SHELL WORLD PHILIPPINES