MANILA -- Chevron Philippines said Wednesday its lease contract for a 120-hectare property in Batangas province complied with Philippine law, responding to the Department of Finance's allegation that it was "onerous."
The contract with National Development Co subsidiary Batangas Land Co is beneficial to both the Philippine government and Chevron Philippines, the company said.
"We will maintain open communication with the Government, an important and valued partner, on this matter,” Chevron Philippines said in a statement.
Finance Secretary Carlos Dominguez on Tuesday said Chevron's monthly rent for the property was a "miniscule" P0.74 per square meter instead of a "fair market value" of P17.90 per square meter.
The DOF said on Wednesday it recommended the closure next year of a government firm which agreed to the Chevron deal so the government could take back the property.