DOE drafting MOA with other gov't units

MANILA, Philippines - The Department of Energy (DOE) is drafting a memorandum of agreement (MOA) with various government agencies to curb rampant oil smuggling in the country, the country’s top energy official said.

Energy Secretary Jose Rene Almendras said the proposed joint MOA with the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC) and Board of Investments (BOI) will involve their collaboration on efforts to eradicate oil smuggling.

He said the MOA would enable these government agencies outright access to exchange of information.

The collaboration, Almendras added, will also enable them to join forces as a lot of manpower will be needed to weed out illegal smuggling activities in the oil industry.

“We hope to be able to sign this agreement soon,” he said.

Earlier, the DOE and the Department of Finance (DOF) spearheaded the creation of an inter-agency team that would specifically zero in on oil smuggling.

Almendras said they have seen the need to intensify moves to immediately address and give focus on oil smuggling which is costing billions of pesos of losses to the government.

“The degree of smuggling is still being discussed. One study is talking about P60 billion while another study is talking of P20 billion. We are in the process of rationalizing and investigating to what extent oil smuggling is,” he, said.

He said they have recognized that oil smuggling should be given much attention.

“Burning issues or most pressing problems of the upstream and downstream is really the aspect of oil smuggling. We have been reminded by oil sector players that they expect the government to step up initiatives and address the oil smuggling problem in the country,” he said.

Under the previous administration, the DOE addressed the issue of oil smuggling through a Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws and Standards (PTF-SEFEELS).