Shell Oil eyes outsourcing services in RP

Shell Oil Co. of the US, a member of the Royal Dutch Shell Group, has wrapped up a one-week investment mission to the Philippines intended to explore other business opportunities in the country.

Shell country chairman Edgar Chua said Shell Oil is particularly interested in "outsourcing" some of its service needs such as in finance, information technology (call centers), accounting and human resources.

However, Chua clarified that the visit was "purely exploratory" and that no firm commitments have yet been made by the US-based company.

"This is part of a regional business trip. They also went to India, Malaysia and China. They are just here to understand the country, the government and the people," he said.

In the Philippines, the Shell group consists of Pilipinas Shell Petroleum Corp., which runs an oil refinery and engages in retail business; Shell Petroleum Exploration B.V., the main operator of the $4.5-billion Malampaya deep water gas-to-power project; and Shell Renewables Inc., which is in the development of renewable energy sources, particularly solar power.

Shell Oil’s subsidiaries and the companies in which it holds substantial interests have extensive operations in the United States. These organizations explore, develop, produce, purchase, transport and market crude oil and natural gas. They also purchase, manufacture, transport and market oil and chemical products and provide technical and business services.

The Shell companies operating in the United States include Shell Chemicals, Shell Exploration & Production, Shell Oil Products US, Shell Gas & Power, and several joint ventures and alliances.

Including its consolidated companies and its share in equity companies, Shell Oil is one of America’s leading oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers. It is the leading oil and gas producer in the deepwater Gulf of Mexico and is a recognized pioneer in oil and gas exploration and production technology.

Chua also pointed that Shell Oil has not indicated whether Pilipinas Shell will follow the move of Caltex Philippines Inc. which recently decided to shut down its oil refinery to concentrate on putting up a world-class oil terminal.

"That is under review. Every year, we are looking at our operations as part of our planning cycle. But that was not part of Shell Oil’s agenda here," he stressed.

But Chua said they expect Shell Oil to come up with a business decision on their operations in the Philippines by early next year.