DOE bats for compromise between Manila, oil firms

Energy Secretary Vincent S. Perez has expressed hopes that the Manila City government and the country’s big three oil companies will be able to resolve their differences amicably and need not go through a court battle.

Perez said the Department of Energy (DOE) does not subscribe to the idea of a government takeover.

"The DOE is advocating not legal action not a takeover but an amicable resolution between the Manila City Council and the oil companies," he said.

But Perez said the DOE is always supportive of keeping a stable supply of oil. "Our position has always been consistent that there would be significant supply disruption with the forced closure of the Pandacan depot. We believe that the scale down is the appropriate solution to address safety and environmental concerns of the residents of Pandacan," he added.

He said a number of barangays in the Pandacan area have already expressed their support to the scaled down operation of the oil facility.

"Some 40 barangays have spoken. They do not want disruption of supply," he said.

The energy secretary is optimistic that the City Council and the oil firms will be able to resolve this issue. "We will be working in the next few days to come up with a resolution. There have been discussions with the city council, mayor and the oil companies."

Last Friday, Caltex Philippines Inc., Petron Corp. and Pilipinas Shell Petroleum Corp. filed a petition for a temporary restraining order (TRO) to prevent the City Council from enforcing City Ordinance 8027, enacted by the City Council on Nov. 20, 2001, which in effect would convert the existing area from an industrial to a commercial zone.

Shell country chairman Eliseo Santiago, in an interview, said the closure of Pandacan oil facility will definitely create supply problem.

"We can only supply about 35 percent of the current oil supply requirement of Metro Manila and nearby provinces if Pandacan oil depot is closed," Santiago said.

Santiago believes that a government intervention, through the DOE, would be an appropriate solution to this problem. "A possible DOE take over could help," he said.

About 50 percent of the gasoline and diesel fuels that supply Manila and surrounding provinces come from Pandacan terminal, and more than 90 percent of the oil and lubricant products are manufactured inside the terminal grounds. – Donnabelle Gatdula