Petron leaving Pandacan oil depot in 5 years

MANILA, Philippines –  Oil giant Petron Corp. has made a turnaround in its decision not to leave the Pandacan oil depot.

In a recent manifestation, Petron informed the Supreme Court (SC) that it has decided to vacate its depot in the highly residential district in Manila and move to a new location in 2016.

The oil firm cited “economic and business reasons” in its decision to transfer. It did not elaborate.

This despite a Manila City ordinance allowing its continued operation in Pandacan, along with the two other big oil companies, Pilipinas Shell Petroleum Corp. and Chevron Philippines Inc.

But Petron clarified that its planned transfer does not mean it already agrees that Ordinance No. 8187 signed by Mayor Alfredo Lim in 2009 is invalid.

“Petron’s original position in the instant case, which remains its position, is that Ordinance No. 8187 is a valid ordinance,” Petron said in a manifestation last Jan. 10 filed through lawyer Estelito Mendoza.

“The relocation of Petron’s facilities in the Pandacan area to another location within five years because of economic and business reasons is entirely compatible with the fact that Ordinance No. 8187 is a valid enactment of the City of Manila,” the oil firm stressed.

Ordinance 8187 was assailed in two petitions separately filed by the Social Justice Society (SJS) and the group of former Environment secretary and former Manila mayor Lito Atienza.

The so-called Big 3 oil companies are “intervenors” in the case.

Both the SJS and Atienza’s group argued that the ordinance is contrary to the now executory March 7, 2007 SC decision that affirmed the validity of the relocation of the depots of the three oil firms.

Ordinance 8187 amended “The Comprehensive Land Use and Zoning Ordinance of 2006” issued during the Atienza administration, which ordered the three oil firms to vacate the Pandacan oil depot.

The new ordinance reclassifies Pandacan district as an industrial zone, thus allowing the three major oil firms to maintain their oil depot in the 36-hectare area. It paves the way for the creation of Medium Industrial Zone (1-2) and Heavy Industrial Zone (1-3).

Petron’s manifestation was in response to a pleading earlier filed by Shell assailing the former for telling the SC that it shall cease operation of its facilities in Pandacan not later than January 2016.

According to Pilipinas Shell, Petron’s disclosure was a “complete turnaround” from its original position and will have “far-reaching consequences to the future of the Pandacan Terminal.”

Pilipinas Shell cited Petron’s manifestation as the main reason why it again sought for an extension to file a memorandum expounding its position on the case.

“Petitioner-intervenor PSPC (Shell) is therefore constrained to make an in-depth study on the implications of the foregoing manifestation by intervenor Petron to the former’s continued operations in the Pandacan Terminal,” Shell pointed out.

Several residents and advocates of the oil depot relocation have opposed the continued stay of the facility in Pandacan, citing the danger it poses to the community in case of accidents or terrorist attacks.

Pilipinas Shell, on the other hand, was against the transfer as it cited the high costs of relocating oil tanks from Pandacan, which could trigger oil price hikes.

Reports had it that San Miguel Corp. is in talks with the Big 3 about their possible relocation to the Manila North Harbor.