Project Capital Costs

COMPANY’S REFINERY MASTER PLAN 2 (RMP -2) PROJECT.

On January 1, 2016, RMP - 2 Project commenced commercial operation, thus, on May 5, 2016, the
Parent Company’s BOD approved the reversal of P25,000,000,000 appropriation for the Parent
Company’s RMP -2 and the re -appropriation of retained earnings amounting to P15,000,000,000 for
capital projects in 2016 and 2017 which are expected to be completed within five years from the date of
the approval.

The project assumes to have a return right after the completion date. The project cost was reverse from
P15, 372,000,000 as the Board of Directors assume the effect of inflation to the cause of raw material in
the near future.

The company has already acquired land near its existing facility, which will be used for the expansion.
The new production facility would be built on an adjacent land that Petron bought from private owners.

The expansion capacity of its petroleum refinery in Limay, Bataan would bring its output to 270,000
barrels daily by 2019. Thus, the company expects additional 90,000 barrels a day from this project, so
from 180,000 barrels a day, they will be hitting 270,000 barrels a day.

Petron owns and operates a petroleum refining complex in the Bataan town with its own piers and two
offshore berthing facilities. It also has a power plant that serves the needs of the refinery.

The company started in 2010 the Petron Bataan Refinery Master Plan Phase 2 Upgrade (RMP 2).
Completed by the end of 2014, the upgrade turned the Bataan facility into a full conversion refining
complex that can convert oil production into higher value products such as gasoline, diesel, jet fuel and
petrochemicals.

Based on the past events, the refinery has been performing at optimum level. For instance, the
production on both Dec. 17 and 18 stood at 179,000 barrels, while on Dec. 16 it reached its full capacity
of 180,000 barrels.