\n
<\/p>\n
MANILA: The Philippines has started preliminary talks with Saudi Arabia to build a strategic oil storage facility in the Southeast Asian country, its energy ministry has said, as Manila seeks to secure fuel supply access to safeguard against global disruptions.\u00a0 <\/p>\n
A global oil shock triggered by the US-Israel attacks on Iran in late February has pushed the Philippines into an energy crisis.\u00a0The country sources nearly all its oil from the Middle East and Filipino households have had to contend with soaring fuel prices for months. <\/p>\n
The Philippine government is now discussing the proposed Philippine Strategic Petroleum Reserve Act, a draft measure to establish the country\u2019s first state-owned oil reserve to build energy resiliency and protect consumers from global energy crunch.\u00a0 <\/p>\n
As part of the proposed petroleum reserve program, officials are engaging foreign partners such as Saudi oil giant Aramco to discuss the establishment of a storage facility in the Philippines, said Rino E. Abad, director of the oil industry management bureau at the Department of Energy.\u00a0 <\/p>\n
\u201cThe discussion is at a preliminary stage, which covers discussion of the interest of Saudi Arabia through Saudi Aramco to implement the construction of a storage facility for crude oil and\/or finished product here in the Philippines,\u201d he told Arab News.\u00a0 <\/p>\n
\u201cSaudi Aramco is keen (to facilitate) a feasibility study which will be one of the bases for deciding if it will proceed to implement the said project \u2026 Philippine DOE will regularly engage Saudi Aramco to extend our full support and assistance.\u201d\u00a0 <\/p>\n
The facility can either be owned by the Philippine government or by offering the country as a storage and commercial hub \u201cfor reliable suppliers such as Saudi Arabia,\u201d according to Abad.\u00a0 <\/p>\n
Talks beyond Saudi Arabia<\/strong><\/p>\n Stakeholders are eyeing a property located in Bataan for the hub, which reportedly could have a holding capacity of 50 million barrels of oil.\u00a0 <\/p>\n The \u201ccontinued access, including a closer partnership through this project\u201d will increase Manila\u2019s access \u201cto the crude oil supply in normal times and more importantly during the existence of a global supply disruption,\u201d Abad said.\u00a0 <\/p>\n Philippine officials also discussed the joint feasibility study with Japan\u2019s Ministry of Economy, Trade and Industry, and are planning to engage partners from the UAE for similar talks.<\/p>\n<\/div>\n