Manila City Council, oil firms strike deal

The Manila City Council ratified yesterday a memorandum of understanding (MOU) between the city government and the three major oil companies that will allow the stay of the Padacan oil depot until December.

Voting 26-5, the councilors stressed the need to consider the security and economic issues involved in the eventual phase out of the Pandacan facility.

Council Pro Tempore Kim Atienza said the city government could now start implementing the guidelines of the MOU signed by Manila Mayor Lito Atienza and the executives of Pilipinas Shell, Petron Philippines and Caltex Philippines on June 26. Energy Secretary Vicente Perez Jr. also signed the MOU.

"With the MOU, we can ensure the safety of the people as well as prevent another oil price hike and oil supply shortage," Kim added.

Majority Leader Marlon Lacson and Councilor Casimiro Sison said the MOU was a "perfect move" on the part of the city mayor. "The MOU is a solomonic solution to the problem as we have anticipated the problem that might take place after the removal of the depot," Lacson noted.

Under the MOU, the three oil firms would immediately start the decommissioning 28 fuel storage tanks containing liquefied petroleum gas (LPG) and aviation fuel that are located beside the residential communities in Pandacan.

With the MOU, there would be a 40 percent reduction in the oil depot’s area of operation. The MOU also stated that safety buffer and green zones, open spaces between the common distribution facility, would also be established and managed by the three firms.— Cecille Suerte Felipe