MANILA, Philippines – The state-owned Philippine National Oil Co. (PNOC) wants to advance the creation of a Strategic Petroleum Reserve (SPR), as well as an interim oil storage program, with the aim of ensuring the security of oil supply and price stability in the country.
PNOC has issued an invitation for a negotiated contract for transaction advisory services for its SPR program.
The SPR, or Strategic Petroleum Stock, is an emergency storage of petroleum fuel and petroleum products maintained by government or private entities, or both, that are released during times of oil supply disruptions. local or international oil.
According to the PNOC, the primary purpose of the SPR is to temporarily replace the physical volumes of imported petroleum or refined petroleum products that could be lost in the short term during an emergency.
PNOC will engage the services of a transaction advisor to prepare the detailed feasibility study for the development of a national SPR.
The full feasibility study should cover the aspects of technical, legal, social, environmental, financial and economic viability, as well as the assessment of the risks associated with the development and implementation of the project.
If a national SPR is deemed viable for the country, PNOC said the study should assess potential sites, taking into account all currently existing storage facilities that can be used for the development of the SPR.
Similarly, the best inventory ownership options, methods and technologies to adopt, composition and volume as well as the total estimated cost of the project must be determined.
Recognizing that any SPR program would involve a gradual increase in volume and presence in strategic locations, PNOC also asks its Transaction Advisor to propose a study on the establishment of an interim oil storage program that can be undertaken in the short term as a transition phase leading to full SPR.
“The goal of this short-term venture is to provide a response mechanism that the government can immediately use in the event of an oil-related emergency,” the PNOC said.
Being a country that relies almost entirely on imports to meet its crude oil and petroleum product needs, PNOC said pump prices in the Philippines are heavily affected by price adjustments caused by complications between different parties on the world stage, in addition to problems within its own borders as well as natural and man-made disasters.