Philippine National Oil Co. (PNOC) president and chief executive officer Thelmo Cunanan said the Philippines will host a meeting of ASCOPE members in February 2002 to discuss the details of the proposed ASEAN Petroleum Security Agreement (APSA).
"We are taking the lead in coming up with the implementing rules and regulations (IRR) of the APSA," he said, noting that the APSA was conceptualized in 1996 to address concerns on supply security. Cunanan said the IRR would define how the APSA would be carried out by the ASCOPE members.
"We are still in the process of defining terms and conditions under the APSA. There are no definite terms yet. This will take time," he said. He stressed that such agreement would lead to stronger cooperation on energy supply security in the region.
Under the proposed agreement, ASCOPE members will be given an opportunity to adopt some mechanisms, such as the so-called preferential trade agreements, to protect themselves from world crude price volatility.
"There are problems in the region especially in the supply side. There are uncertainties in supply from the Middle East. We should adopt some measures to provide shield on oil shortages," Cunanan said.
The terms of the trade arrangement, he said, will still have to firmed up. "It might involved share of crude supply," he added.
He pointed out that the IRR would be drawn up in such a way that it would not be considered to be adhering to so-called "trade protectionism" among the countries in the region.
Another possible mechanism to be included in the APSA is the so-called "preferential financial assistance."
This deal, he explained, might involve granting of financing assistance to ASCOPE members, which are mostly state-owned oil firms. "This will be an inter-company agreement," he said.
For the Philippine government’s part, he said the PNOC is spearheading a campaign to improve energy sufficiency.
Specifically, he said the Philippines will continue to pursue the implementation and operationalization of various international and bilateral agreements towards energy cooperation.
"While we do not foresee interruption in energy supply from outside the Philippines as we are still heavily dependent on imported energy. Our government is also driving its campaign towards judicious conservation and efficient utilization of energy," he said.
According to Cunanan, the campaign specifically aims to improve energy use, thereby deferring the need for new energy generating facilities and reducing present energy consumption without sacrificing economic productivity.
"Ways and means to diminish the adverse effect of the energy crunch is being developed and information gathering is being intensified to forewarn the country of any impending energy crisis," he said.
He also said the long term mutual cooperation in the development of resources such as natural gas and electricity interconnection will further expand the country’s access to energy resources.
Moreover, he said linkages with other countries for information sharing on energy are also being enhanced. "Active involvement in regional energy organizations like ASCOPE provides us with valuable information and opportunities to further boost energy security within our country and the region as well," he said.