DOE chief to meet ‘Big 3’ on Pandacan depot phasedown

Energy Secretary Vincent S. Perez said yesterday he will ask the ‘Big 3’ oil companies to explain their recent move to phase down their operations in the Pandacan depot.

"I would like to call a meeting with the three oil companies to formalize what exactly they are proposing. I’d like to hear exactly what this green or buffer zone that they are proposing which could be a possible solution or compromise solution. I’ll be calling a meeting with the three CEOs (chief executive officers) of the oil firms," Perez told reporters, in an interview.

He noted that there are a number of scenarios that they have been seeing for the fate of the 30-hectare oil facility.

"Scenario 1 or Option A, status quo no phasing down or no change which is unacceptable to the DOE and Manila City government; second option is total relocation. And third option maybe this phasing down, shrinking, depleting of the Pandacan depot into a smaller area and/or creating a green or buffer zone. But I want them to quantity or firm up what exactly they are proposing. I’m willing to listen. I have not seen anything yet. I want to see the layout. Now, I’m intrigued and curious to this possible third option," he said.

The energy chief said there is a need to clear things up as he supports the oil companies’ views that a total relocation of the depot will not be feasible. "I also realize that it is completely impossible to relocate by June 30 and I hope city council and the mayor of Manila can appreciate that," he said.

According to Perez, the DOE has been negotiating with the three oil majors-Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. to intensify their efforts to find an effective way to solve the Pandacan depot issue.

"We have been quietly urging the three oil companies there in Pandacan to accelerate their relocation strategy from Pandacan. There are a series of meetings led by the convenor Monico Jacob. There have been several levels of meetings among the CEO with myself, and the technical guys. And we want them to not ignore the wishes of Mayor Lito Atienza.

Perez pointed out that the DOE is quite optimistic that the parties concerned will be able to resolve this issue without creating an adverse impact on the consuming public.

"We want them to come up with whatever plan that will not create undue increases in the prices of fuel. That is my major concern combining it with the security aspect of Pandacan," he said.

Perez said he was pleased to hear about the phasedown of the ‘Big 3.’ "I am pleased to hear that Petron, Shell and Caltex have started to pursue a phasedown of their facilities in Pandacan," he said.

The oil firms have announced they would be phasing down some of its facilities inside the depot as part of its commitment to meet some of the safety and security measures being eyed by the city government of Manila.