RP confident Russia will sign energy cooperation agreement

The Philippines is confident that Russia will sign an energy cooperation agreement with the government in December that will make the country its regional hub for the delivery of Russian oil and fuel products to the Asia-Pacific region, according to the Department of Foreign Affairs (DFA).

Foreign Affairs Secretary Alberto Romulo said Russia has the world’s biggest reserves of natural gas and coal next to Qatar.

"We’re very hopeful we’ll get a memorandum of understanding (MOU) on energy cooperation. We’re asking them to consider the Philippines as a market for their oil and make the country as its distribution center for natural gas and oil which will be good for the economy, fuel resources and jobs. We’ll make a report about this to President Arroyo," Romulo said.

He added that the energy cooperation was being prepared during his visit to Russia last week and it was expected to be signed by both governments next month or in December.

The energy cooperation, he said, is an idea of the Department of Energy (DOE) to provide the Philippines with an oil reserve and to name Surigao and Subic, Zambales as its strategic centers.

"We hope that’ll be our source of energy supply, especially natural gas. We hope that we’ll be the distribution center and storage center because of the proximity of the Russian Far East to the Philippines, which is a strategic location. It would be mutually beneficial," he said.

Romulo was invited to Russia to discuss issues of mutual interest to the Philippines and Russia.

He was accompanied by Philippine National Oil Co. president Ed Mañalac in the meeting with the Russian Federation from Oct. 11-15, which was a follow-up to the visit of Speaker Jose de Venecia and former energy secretary Vince Perez.

He had discussions with Russian Foreign Minister Sergey Lavrov on bilateral cooperation on energy, fighting transnational crime, promoting tourism and activities to mark next year’s 30th anniversary of the establishment of diplomatic relations between Manila and Moscow.

"The Philippines needs to diversify its fuel sources and explore alternative strategies to address, over the long term, heavy reliance on our traditional sources of fuel and energy. Cooperation with Russia is seen as a key initiative in advancing our country’s energy security agenda," Romulo said.

Russia is fortifying its global distribution network for its oil, natural gas and coal and it has adapted an outward-looking approach for prospective markets, he explained. "Thus, the Philippines can also position itself as an ideal regional hub for the delivery of Russian fuel and energy products to other Asia-Pacific countries."

The possibility of Russia’s participation in the upcoming East Asia Summit/East Asia Community will also be discussed during Romulo’s meeting with his Russian counterpart.

"The Philippines is the nearest Southeast Asian country to the Russian Far East — that includes Sakhalin and Yakutsk in Siberia — where a substantial portion of Russian oil, natural gas and coal originate," Romulo said.