‘Big 3’ to submit plan for Pandacan oil depot

The "Big 3" oil companies are set to submit to the Department of Energy (DOE) and the City of Manila their "single facility concept" for the phasedown of the Pandacan oil depot.

Petron Corp. president Motassim al-Ma’shouq told The STAR that their company, along with the other oil firms occupying the oil facility – Caltex Philippines Inc. and Pilipinas Shell Petroleum Corp., is now readying a "commercial framework" to detail the activities that they would have to undertake under the signed memorandum of understanding (MOU) with the DOE and the City of Manila.

"We are working out right now ways to fulfill terms of our MOU with the Manila government and the energy department," Al-Ma’shouq said.

But he admitted that the oil majors will not be ready to commercially operate based on a single facility mode until the next couple of months. "It will take us at least two more months to come up with concrete plan for the phased down operation of the oil depot," he said.

The Petron official said they are likely to submit the single-facility concept to the DOE and City of Manila by October.

The City of Manila has agreed to allow the depot to stay at its present location provided that the oil firms carry out a safety scheme that will distance the petroleum warehouse from the nearby residents of the area.

Under the MOU, the oil firms will draw up a master plan that will provide a so-called buffer and green zone around the existing oil facility.

Aside from this, the oil companies have also committed to remove and decommission some 28 fuel tanks, including three liquefied petroleum gas (LPG) spheres, within a prescribed period.

A technical committee has been formed by the three oil companies to look at the possible operations and management structure of the joint terminal and the engineering design of the new scaled down facility.