I.

INTODUCTION
Oil is a vital source of energy for the world and will likely remain so for many decades to come,
even under the most optimistic assumptions about the growth in alternative energy sources.
Most countries are significantly affected by developments in the oil market, either as producers,
consumers, or both. In 2008, oil provided about 34% of the worlds energy needs, and in the
future, oil is expected to continue to provide a leading component of the worlds energy mix.
The International Energy Agency (IEA) projects that oil will provide 30% of the worlds energy
mix in 2030. In the United States and Canada about 2/3 of oil is used for transportation. In most
of the rest of the world, oil is more commonly used for space heating and power generation than
for transportation .Oil is a key product for the worlds agriculture industry, which helps feed the
worlds population of more than six billion.
Crude oil is the most important natural resource of the industrialized nations. It can generate
heat, drive machinery and fuel vehicles and airplanes. Its components are used to manufacture
almost all chemical products, such as plastics, detergents, paints, and even medicines. As it is
such an important resource it is very important to expand our technical ability to discover new
sources and extend the production lives of existing oil fields. The source of oil and gas are
animals and plants that died millions of years ago, the World Petroleum Council explains. These
organisms sunk to the bottom of the sea and were buried by sand and mud. After millions of
years, the dead sea creatures became buried deeper and deeper and turned into oil and gas.
The extreme pressure and temperature deep underground transformed the chemicals from the
decaying organisms into crude oil and gas.
The International Energy Agency estimates that oil will supply 30 percent of the world's energy
mix in 2030, reports NRC. Around two-thirds of oil in the U.S. and Canada is used for
transportation. Oil is mostly used for power generation and space heating in other countries.
Moreover, oil is a valuable product for the agriculture industry, which provides food for people
across the globe.
Petroleum is used for a wide range of applications, most-notably powering internal combustion
engines, according to Petroleum.co.uk. Bitumen, the thickest form of petroleum, is used for
paving roads, forming the blacktop and roofing. Moreover, petroleum is a major component of
various plastics and synthetics.

II. COMPANYS PROFILE

(PILIPINAS SHELL PETROLEUM CORP.)
Part of the Shell global group of oil, gas and petrochemical companies, makes a wide range of
high quality fuels, lubricants and specialty products. Shell stations also deliver the merchandise
for personal mobility - vehicle fuels, food and drinks, groceries and more - all available at the
same point in a single purchase.
They provide advanced solutions for industrial and commercial customers, ranging from advice
on energy saving to full factory maintenance programmes and developing a wider range of ecommerce solutions to meet customer's changing needs, such as making travel plans with Shell
GeoStar.

BRIEF BACKGROUND
The Shell companies in the Philippines (SciP) represent various companies operating in oil and
gas exploration, extraction, refining and delivery to consumers. Commencing its operations in
1914, SciP has grown to be one of the Philippines largest investors, directly employing over
4,000 people nationwide.
SciP is part of Shell, a global group of energy and petrochemicals companies employing
approximately 93, 000 people and operating in more than 90 countries and territories. Shell
helps meet the worlds growing demand for energy, aiming to do so in economically,
environmentally and socially responsible ways.
Pilipinas Shell Petroleum Corporation (PSPC) is involved in the manufacture, marketing, sales,
supply and distribution of oil productsserving customers in almost every field of transport,
commerce and industry with its wide range of high quality fuels, lubricants, liquefied petroleum
gas, aviation fuel, bitumen and other specialty products. Pilipinas Shell commenced operations
of its first crude distiller in Tabangao, Batangas in 1962 (now an oil refinery since 1994). Shell
also opened a refrigerated LPG terminal in 1983, the first of its kind in Asia operated by Shell
Gas Eastern, Inc. with trading handled in the region by Shell Gas Trading Asia Pacific.
In the business of oil and gas exploration and production, Shell Philippines Exploration B.V.
(SPEX) operates the Malampaya Deep Water Gas-to-Power Project together with its joint

venture partners. Malampaya represents the largest and most significant industrial investment in
the history of the Philippines. It heralded the birth of the countrys natural gas industry, enabling
the supply of clean, environment-friendly fuel and providing 2,700 megawatts of power to Luzon
for a period of 20 years. This represents roughly 40-45% of Luzons power generation
requirements, providing the country a considerably long-term revenue stream to the
government, in addition to considerable foreign exchange savings.
In 2004, Shell set up a pioneering new activity with the establishment of the Shell Shared
Services (Asia) B.V. (now called Shell Business Operations Manila) which provides
accounting, human resources and other business-related processing services to Shell
companies in various parts of the world. Now employing over 3,000 staff, Shell Business
Operations-Manila has been recognised for its operational and compliance excellence.
To further strengthen and support SciPs corporate social responsibility thrusts, Pilipinas Shell
Foundation, Inc. (PSFI) was established in 1982 to serve as the social investment arm of Shell
in the Philippines. PSFI implements various training and community development programmes
in communities nationwide, and on its 25th year in 2007, the foundation surpassed its 1 million
beneficiaries mark. To date, PSFI has benefited over 8.5 million people all over the country
through its community development programmes.
This year, Shell companies in the Philippines is celebrating its 100 years of business presence
in the Philippines and is committed to delivering smarter products and cleaner energy for better
motoring experience for the present and future generations of Filipinos. As a global leader in
power, energy, and gas technology, Shell remains to be a strong promoter of sustainable
development in the country by energizing communities all over the country for a more
sustainable energy future

Our Vision
To be the Top Performing and Most Admired Refinery in Asia

Our Mission
To continuously deliver shareholder value by:
Manufacturing and supplying oil products and services that satisfy the needs of our
customers
Constantly achieving operational excellence
Conducting our business in a safe, environmentally sustainable and economically
optimum manner
Employing a diverse, innovative and results-oriented team motivated to deliver
excellence

PRODUCTS AND SERVICES

On the Road
When you're on the road trust Shell to meet your every need. Our customer-focused network
offers you a range of quality Shell Fuels and Lubricants, Car Wash services, Shell Cards and
convenience shopping.

CORE VALUES

The conduct of the companys business is guided by a set of beliefs that are strongly held by its
top management and entire employee force. These core values are:
1. Dedication to the Customer We believe that the customer is the reason for our exis-tence.
We cannot be successful unless we deliver high quality service to our customers. Al-though the
stockholders gave birth to the enterprise, it is its customers that will make the company flourish.
2. Pursuit of Excellence Each of us will do our tasks in the best possible way. We believe
that if something is worth doing, it is worth doing very well. Mediocre quality work is simply not
acceptable in our firm.
3. Honesty, Integrity and Fairness We will treat the company, our customers and each other
honestly, fairly and with the highest level of integrity.
4. Congruence between Personal and Corporate Goals We are all in this enterprise
together. We accept that the financial future of the company and the well-being of its people are
closely intertwined. If the company does well, it will share the benefits of such success with its
people. However, if the company suffers reverses, we also expect our people to be equally
willing to sacrifice with the company.
5. Belief in Teamwork We are a team. Our people are interdependent. We will produce our
best results if we cooperate and work as a team.
6. Belief in Innovation We believe that major breakthroughs can be achieved only through
change. In fact, we will welcome change. We will deliberately seek new and better ways of
doing.

III. FINANCIAL STATEMENT

The Directors hereby submit their annual

report to the members together with the
audited financial statements of the
Company for the financial year ended 31
December 2013. PRINCIPAL
ACTIVITIES The principal activities of
the Company consist of refining and
manufacturing of petroleum products.
There has been no significant change in
these activities during the financial year.
FINANCIAL RESULTS The results of the
operations of the Company for the
financial year were as follows: RM000
Loss for the financial year (155,983) DIVIDENDS The dividends on ordinary shares paid or
declared by the Company since 31 December 2012 were as follows: RM000 In respect of the
financial year ended 31 December 2012 as shown in the Directors report of that year: Final
gross dividend of 15 sen per ordinary share of RM1.00 each, less: income tax at 25%, paid on
24 May 2013 33,750 The Directors do not recommend the payment of any dividend for the
current financial year. RESERVES AND PROVISIONS All material transfers to or from reserves
and provisions during the financial year are shown in the financial statements. DIRECTORS The
Directors who have held office during the period since the date of the last report are as follows:
Iain John Lo Dato Seri Talaat Bin Husain Dato Saw Choo Boon Datuk Zainun Aishah Binti
Ahmad Lau Nai Pek Datuk Yau Ah Lan @ Fara Yvonne (appointed on 13 August 2013) Arnel
Lamco Santos (appointed on 21 January 2014) Amir Hamzah Bin Abu Bakar (appointed on 2
April 2014) Tan Sri Datuk Clifford Francis Herbert (resigned on 2 December 2013) Khong Kok
Toong (resigned on 31 December 2013) Chew Seng Heng (resigned on 26 February 2014)
Dato Haji Rozano Bin Saad (resigned on 2 April 2014) In accordance with Articles 81(2) and
81(9) of the Companys Articles of Association, Datuk Yau Ah Lan @ Fara Yvonne, Arnel Lamco
Santos and Amir Hamzah bin Abu Bakar retire by rotation at the forthcoming Annual General
Meeting and, being eligible, offers themselves for re-election. In accordance with Article 81(3) of
the CompanysArticles of Association, Dato Saw Choo Boon and Lau Nai Pek, retire by rotation
at the forthcoming Annual General Meeting and, being eligible, offer themselves for re-election.

IV. INTERPRETATIONS
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is protected by copyright and/or other intellectual property rights. All copyright and other
intellectual property rights in this material are either owned by Shell or have been licensed to it
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By entering this site, you are deemed to have agreed to be bound by the provisions of Republic
Act No. 8792 otherwise known as the Electronic Commerce Act which is an Act that provides
for the recognition and use of Electronic Commercial and Non-commercial transactions,
penalties for unlawful use thereof, and other purposes.

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site will only be used in accordance with our privacy policy. Please read this carefully before
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with our privacy policy.

V. CONCLUSION
Grants from the Government are recognised at their fair value where there is a reasonable
assurance that the grants will be received and the Company will comply with all attached
conditions. Government grants relating to costs are recognised in profit or loss over the period
necessary to match the related costs for which the grants are intended to compensate.
Government grants relating to the purchase of assets are deducted in arriving at the carrying
amount of the assets. The grants are recognised in profit or loss over the life of a depreciable
asset by way of a reduced depreciation charge.

REFERENCE
www.shell.com.ph/
https://www.facebook.com/.../Pilipinas-Shell-Petroleum-Corp.../2087315.

en.wikipilipinas.org/index.php/Pilipinas_Shell_Petroleum_Corp

https://en.wikipedia.org/wiki/Royal_Dutch_Shell