Russia, Iran to supply oil to RP in case of Middle East war

The country is now assured of enough oil supply in the event war breaks out in the Middle East where traditional sources are located.

Russia and Iran have agreed to supply the Philippines with crude, Speaker Jose de Venecia Jr. announced yesterday from Teheran, the Iranian capital.

"The Philippine oil supply is stable and secure and we have successfully diversified our sources," he said.

De Venecia led a three-man team that President Arroyo sent to look for alternative sources of crude.

His team members are Energy Secretary Vince Perez and Presidential Adviser for Job Creation Luis Lorenzo.

He said arrangements would be finalized as soon as Philippine officials are able to determine the quantity of crude the country would need in case supply from the Middle East is disrupted.

"But we already have assurances from Russia and Iran," he said.

The Philippines uses about 300,000 barrels of oil a day and most of this is supplied by Middle Eastern countries, like Saudi Arabia.

The De Venecia group was in Moscow before it proceeded to Iran.

In Moscow, it received the commitment of Russian officials that they would augment the country’s supply with crude from the Russian Far East region of Vladivostok-Nakhoda, just off Japan and South Korea.

The Speaker and his team members met with his Russian counterpart, Guennady Seleznyev, Deputy Foreign Minister Viktor Kalinzhny, Deputy Minister for Economic Development and Trade Vladimir Karastin, and officials of Yukos Oil Corp., OAO Sibneft and OAO Rosneft, Russia’s biggest oil companies.

"Even if war breaks out, there is no danger to Philippine oil supply. For the first time, we will have a significant supply from Russia," De Venecia said.

He said a team from Yukos will visit the Philippines soon for further discussions with energy officials.

During his talks with Seleznyev, the Speaker reiterated his proposal for cooperation on combating terrorism between a tri-nation coalition made up of the Philippines, Indonesia and Malaysia and a similar alliance among six Central Asian republics, including Russia and China. – Jess Diaz