Two of the so-called “Big 3” oil companies have expressed opposing views on the recently approved ordinance which would require them to move out of the Pandacan oil depot by January 2016.
In a text message, Petron Corp. chair Ramon S. Ang said that the transfer of their operations was already underway as part of a pledge the firm made in 2010 to move out of the area on or before 2016.
On the other hand, Chevron Philippines (formerly Caltex) said in a statement that there was a need to keep its facility in the area while Pilipinas Shell Petroleum Corp. was unavailable for comment.
Draft Ordinance No. 7461, which would now be forwarded to Manila Mayor Alfredo Lim, was unanimously passed by the city council on third and final reading on Tuesday.
It reclassifies the area where the oil depot is located from an industrial to a commercial zone. Oil companies fall under the category of heavy industrial.
According to Ang, Petron “will do its best” to comply with the ordinance. He cited a filing made by Petron’s parent firm, San Miguel Corp., in the Supreme Court in 2010 in which the oil company made a commitment to stop its operations in Pandacan by 2016.
The oil company is expected to spend as much as $500 million to complete its relocation to five different sites in Luzon, including Batangas and Cavite provinces.
For its part, Chevron said that while it has yet to receive a copy of the ordinance, “it maintains that the continued stay of its oil terminal facilities in Pandacan is optimal as far as bringing its products closer to the market.”
“Our terminal has been operating in the country for more than 80 years with no major incident. Our ongoing operations will continue to meet international safety standards and comply with all legal conditions imposed by the authorities. Safety, security and cost efficiency as well as due regard for the health of concerned stakeholders and the environment, are of paramount importance to all of us,” added Raissa Bautista, Chevron manager for policy government and public affairs.