Iran eyes RP for oil storage facility

The National Iranian Oil Co. (NIOC), the state-owned oil firm of Iran, will explore the possibility of putting up a storage facility in the Philippines.

Energy Secretary Vincent S. Perez said a NIOC representative will visit the country soon to look at the prospects of having a distribution point in the country.

"NIOC has a representative in Singapore who will come to the Philippines to take a look at Nonoc facilities. This is a good sign," he said.

Perez said they brought up the idea of putting up a storage facility in Nonoc island in Surigao to NIOC during their recent visit to Iran.

"We asked them to take a look at an oil facility in Nonoc island as a possible oil storage for the National Iranian Oil Co.," he said.

Perez, together with House Speaker Jose de Venecia, met with Iran oil minister and NIOC chairman Bijan Namdar Zangadeh.

Iran, so far, is the Philippines’ biggest oil seller, accounting for about 25 percent of the country’s oil supply.

According to Perez, the Iran oil officials responded positively on the Philippine government’s request for a possible bilateral oil agreement. "They are willing to sell us more oil if we want to," he said.

He said the Iranian oil officials are also receptive of the possibility of doing business in the Philippines.

"They intend to potentially come in as a player particularly in Mindanao. It is something that they are very supportive. This will show their support to the Islam communities in that sense we invited them to Nonoc island in Surigao as a possible area for oil storage where they can put some refined products like bunker fuel and use that a distribution area for the Philippines or throughout Southeast Asia," he said.

Perez has been going around to scout for countries that can be the country’s potential oil suppliers if tension with Iraq and the US escalates.

Last month, Perez and De Venecia went to Russia to discuss the possibility of another bilateral oil agreement. Earlier, the Philippine National Oil Co. (PNOC) has successfully tapped Pertamina of Indonesia as one of the potential sources of oil. PNOC is also working out a deal with Petroleum Brunei.