Oil firms need more time to scale down Pandacan operations, says DOE official

The Big 3 oil companies should be given ample time to scale down their operations at the Pandacan oil depot, a Department of Energy (DOE) official said.

"They should be given a reasonable time to accomplish what has been committed to the Manila City government," DOE’s Energy Industry Administration Bureau (EIAB) director Zenaida Monsada said in an interview.

Monsada, however, would not specify what should be considered a "reasonable time."

"I haven’t talked with the oil companies yet about their proposal on how to go about the scaling down in the Pandacan oil terminal," she said.

Meanwhile, the three oil companies, occupying the oil depot – Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. – submitted last Wednesday to the Office of the City Mayor a progress report stating their accomplishments in accordance with a Memorandum of Understanding entered into with the City of Manila last June 2002.

The submission of the report was a requirement imposed by Mayor Lito Atienza in connection with the request by the oil companies for renewal of the operating permits of the oil depots located at Pandacan.

The six-month progress report covering the period July to December 2002 states that the oil firms have removed two LPG spheres and 11 vertical tanks which represent 46 percent of the total commitment of 28 fuel storage tanks for decommissioning. The oil companies also reported that the green safety buffer zone is cleared and ready for earthworks and greening. Included in the report is a firm schedule for the removal of the other storage tanks in full compliance with the MOU.

Atienza said the oil firms would have to talk to the city council regarding their request for a longer period to scale down their operations.