Petron payout to Guimaras folk reaches P120 million

Petron Corp., the country’s largest oil refiner, has paid out around P120 million in compensation to individuals affected by the Guimaras oil spill, a top company official said.

Petron president Khalid Al-Faddagh said adding the expenses of the clean-up, cash for work program and clearing of debris, the total amount the company has spent would amount to P200 million.

Al-Faddagh, however, said he could not quantify as yet the total budget for the rehabilitation of the Guimaras shore as it is a "long-term" undertaking.

He said Petron is trying to blend its corporate social responsibility (CSR) program with the rehabilitation of the affected areas in the province.

According to the Petron official, they have, for instance, built school as part of this endeavor. 

Meanwhile, he said the International Oil Pollution Compensation (IOPC) is taking charge of the pull-out of the sunken vessel off the sea of Guimaras. He said this task would likely be completed by March this year.

IOPC will extend compensation (at a maximum amount of $315 million) for "pollution damage" which covers clean-up costs, property damage, consequential and economic loss.

Petron has tapped IOPC to fund the claims of the M/T Solar 1, the barge that sunk near Guimaras Island last August.

Insurance firm Protection and Indemnity Club (P&I) handles the marine insurance of Sunshine Maritime Development Corp. which owns M/T Solar 1. It covers third party liabilities and expenses arising from owning ships or operating ships as principals.

IOPC and P & I representatives have been constantly meeting with affected communities including fishermen and those engaged in the tourism industry. 

The IOPC Fund – which collects contributions from member-countries – can provide compensation for oil pollution damage resulting from oil spills in tankers.

The fund was established as a result of the International Convention on Civil Liability for Oil Pollution Damage where the Philippines became a member in 1999.