Task force drafts measures for oil supply security

A task force for the ASEAN Petroleum Security Agreement (APSA) has drawn up a number of medium and long-term measures to further enhance cooperation among member countries regarding petroleum supply security.

The APSA task force was created by the ASEAN Cooperation on Petroleum (ASCOPE) to study possible emergency policies, contingency plans, stockpiling system and implementing mechanisms in case of an oil crisis in the region.

ASCOPE national committee chairman for the Philippines Alfredo Parungao said the meeting was attended by delegates from Indonesia, Malaysia, Singapore and Thailand. The first APSA task force meeting was held last March 18 to 20 this year.

The task force has recommended that appropriate measures be carried out to further enhance short, medium and long-term security and sustainability of petroleum supply.

The short-term measures, the task force said, could include emergency response and regional, joint common stockpiling.

The medium to long-term measures may consist of commitment to support initiatives under the Trans-ASEAN Gas Pipeline (TAGP) and ASEAN Power Grid; explore the possibility of joint exploration and development; improve energy efficiency and diversification of energy supply sources.

Aside from the measures, the other consolidated recommendations of the task force include: a realization of a workable energy security arrangement in ASEAN; a thorough review on APSA based on current situation and conditions; and APSA should be activated only by the ASEAN ministers of energy.

Another suggestion of the task force is that in times of oversupply of crude oil/petroleum products, there cannot be a commitment to accord purchase priority.

The task force said based on the suggestion of the Thailand delegate, the definition of a country in distress could shortfall in supply of 10 percent of the normal domestic requirements of the country.

It said there should be streamlining of the process for the enforcement of APSA. There is also a need, the task force said, to designate an agency to spearhead, manage, coordinate and liase for the implementation of APSA. – Donnabelle Gatdula