Iran vows to supply oil to RP in case of war

The National Iranian Oil Co. (NOIC) has committed to supply crude oil to the Philippines during unusual market supply conditions and emergency situations.

Such commitment is embodied in a memorandum of understanding (MOU) signed last Feb. 11 by NOIC and the state-owned Philippine National Oil Co. (PNOC).

The signing of the MOU was the result of initiatives taken by Speaker Jose de Venecia and Energy Secretary Vincent S. Perez during their official visit to Iran in November last year.

Aside from ensuring continuity of supply, NOIC also signified its willingness to forge a joint venture with PNOC to further expand the supply of Iranian crude oil to the Philippines.

The MOU also calls for the two parties to conduct a study on the feasibility of establishing an Iran-RP oil storage facility in a location mutually acceptable to both parties.

"The said facility should be in a mutually-acceptable place in the country, with emphasis upon security and accessibility of the area," PNOC president and CEO Thelmo Cunanan said.

The Iranian firm is likely to look into the possibility of supplying naphtha condensates to the $1.2-billion naphtha cracker project of PNOC.

The MOU will also allow the NOIC to participate in the development of an upstream petrochemical industry for the Philippines.

Last month, the PNOC also forged an MOU with the Iranian Petrochemical Commercial Co. (IPCC) for a possible joint venture in the petrochemical sector during the Third Joint Commission Meeting held in Tehran.

"We are giving ourselves six months to come up with joint preliminary studies so we can have the appropriate formal agreements later. NOIC has assured us of a steady supply of crude in case our supply is disrupted for any reason. We also look to further oil supply security for the country once the Iran-RP oil storage facility is in place," Cunanan said.