Perez calls for ‘win-win’ solution to oil depot issue

Ruling out the possibility that the Pandacan oil depot will be relocated this month, Energy Secretary Vincent S. Perez asked yesterday the Big 3 oil firms and the city of Manila to sign a memorandum of understanding (MOU) with the Department of Energy (DOE) for the scaling down of the operations of the facility, a more that is expected to draw a strong reaction for the City Council of Manila residents in the area.

"(Relocating the oil terminal) is becoming more and more unlikely at this time," Perez told reporters during the official launching of the PNOC-Petronas natural gas vehicle development program.

Perez said he met with the oil companies yesterday morning to firm up their proposed phasing-down of the oil facility located in the heart of Manila. "I called a meeting with the Big 3 and they heeded my call to bring a solution to the Pandacan issue. I urged them to articulate their proposal to a MOU between the DOE, local government and themselves," he said, noting that the oil firms’ license to operate in the oil terminal will lapse on June 30 this year.

The energy chief pointed out that it is important for the oil firms to signify their commitment to the Manila City government of their interest to look for alternative ways in lieu of the total phase out of the depot. "They could for the first time commit in handwriting their plans or a substantial scale down of their oil depot facilities and creation of a green buffer zone," he said.

Perez said the oil companies may come up a win-win solution soon. "We hope that the MOU will be presented by the Big 3 next week," he said.

He said at present, there are issues that should be threshed out between the oil firms and the City Council of Manila.

"The key issues involved here are: first, for the MOU to be presented to Manila City Mayor Lito Atienza. Second, a significant scale down of their facilities within a prime area acceptable to the mayor and practical from an engineering point of view. Third is the creation of a green buffer zone to protect the distance of oil depot terminals from residential area surrounding Pandacan. This is something that the DOE is looking seriously now as a feasible third option. The first option, we feel, will create a significant disruption in the supply of fuel products and possible an increase in the prices while the second option is unacceptable," he said.

Perez said the proposed MOU will detail the phasing down plan of the oil firms including the overall investment in case this move is approved by the Manila government.

The energy secretary earlier warned that a premature closure of the terminal will cut the fuel supply by as much as 40 percent. About 90 percent of the fuel needs of Metro Manila and neighboring provinces comes from the Pandacan terminal.

Residents raise questions

With only two weeks to go before the June 30 deadline for the phaseout of oil depot facilities in Pandacan, concerned residents are asking whether the transfer would push through as scheduled.

Residents raised the question following reports that Manila Mayor Lito Atienza has entertained a request from the oil firms for them to stay longer.

Under a city ordinance, the oil firms should vacate the oil depot in Pandacan on or before June 30 after the Manila City Council reclassified the area from heavy industrial to residential-commercial zone.

Reports indicate that officials of the oil firms have initiated dialogues with local government officials to give them more time to stay in the area. It was also reported that Energy Secretary Vince Perez acted as mediator in the dialogue.

But Atienza’s spokesperson Armand Sebastian maintained that the phaseout is definite because "the mayor is firm on his stand for the unconditional phaseout of the oil depot facilities."

In an earlier interview, Council Majority Leader Marlon Lacson confirmed the "unconditional" phaseout of the oil depot facilities, saying "the law has to be implemented." – Donnabelle Gatdula, Cecille Suerte Felipe