THE government should fast-track administrative measures for the realization of a Philippine Oil Reserve, the chairman of the Senate Energy committee said on Thursday.
At the second hearing of the Senate Energy Panel on Oil Deregulation Law Amendments, Sen. Erwin Tulfo urged the Department of Energy (DOE) and the Philippine National Oil Company (PNOC) to move quickly on the announced plan for an oil reserve hub because certain countries such as the United Arab Emirates (UAE), Saudi Arabia, and Japan are waiting for the green light of the Philippine government for them to fund one.
‘The UAE expressed that they’re very willing and interested to build their oil depot here. They said that they will construct it using their own budget, but we will definitely benefit from it,’ Tulfo told the representatives of DOE and PNOC.
Oil Industry Management Bureau Director Dino Abad confirmed the UAE proposal, affirming that the DOE already created a Philippine Strategic Petroleum Reserve (SPR) Team. This is the agency’s task force that will coordinate with all the foreign countries proposing to build oil depots in the Philippines. ‘These foreign countries want to fully understand our aspirations so when they build here, they will consider concerns. On our end, our concern is that we will have a reserve right to be prioritized once a crisis hit,’ Abad said in mixed English-Filipino.
PNOC Deputy Manager Antonio Buenviaje, likewise, assured Tulfo that they have parallel efforts to make the Philippine Oil Reserve a reality.
Tulfo asked for a timeline, saying: ‘When will this reserve be constructed and filled with oil?’ Buenviaje said that by 2027, ‘facilities will be ready.’ For their part, the oil companies affirmed that having oil reserves will substantively slash fuel prices for consumers.
‘We must strengthen our country’s energy security. With that, our government should streamline the steps and processes for permits and approvals so international major oil producers will be encouraged to build their reserves here.’ Tulfo remarked.
‘We need adequate reserves. We need to build our capacity to withstand external shocks,’ he added.