Oil majors agree to relocate Pandacan depots

The country’s oil majors have agreed to relocate their oil depots in Pandacan, according to Energy Secretary Vincent S. Perez.

"We had a meeting last Friday with Pilipinas Shell Petroleum Corp., Petron Corp. and Caltex Phils. Inc. and we discussed the transfer of oil depots from Pandacan. The conclusion was there is a need to transfer the depots," Perez said.

Perez, in a radio interview said the move is in response to queries raised by the Senate and other concerned parties on the potential hazards posed by the continued operation of the oil depots in Pandacan.

Perez said, they expect to come up with a memorandum of agreement (MOA) with the oil firms and other concerned agencies soon although the proposed transfer will take time.

"This can’t be done overnight. There is a need to come up with a master plan in terms of addressing the environment, economic, social and security concerns.

He said they may be able to come up wit a concrete plan this year while the transfer itself may take one to two years.

Officials of the major oil players said they are conducting individual feasibility studies.

"Discussions should be focused on concerns on the impact of the movements on our operations," Shell communications manager Reynaldo Gamboa said, adding that the transfer could entail disruption of daily supply.

Gamboa said though they do not have a choice if the government would order them to transfer the depots, he said they need to calculate the economic cost of the proposal.

He said they are looking at transfer options. "We are studying if it would be possible to have our own depot," he said. The three oil companies are sharing the Pandacan depot.

The Senate Committee on Energy has decided not only to investigate the environmental aspect of the presence of oil depot in the area but also the security of the residents living near these facilities.

Pandacan residents have complained that oil terminals could be susceptible to terrorist attacks.

Aside from this, a number of Manila City councilors are also pushing for the dismantling of the oil depots, which are situated a few hundred meters away from the Malacañang, the official residence of the First Family.