In a reverse decision, Petron Corporation has decided to quit its operations at the Pandacan oil depot, in Manila in the Philippines, within five years.
In a manifestation presented to the Supreme Court, the company said it did not want to keep its tank storage on the site because of ‘economic and business’ reasons.
The shareholder that controls Petron, San Miguel Corp, said it would purchase 35% of Manila North Harbour Port which has a 25 year plan to develop and operate one of the major local ports.
San Miguel made the announcement before Petron revealed its decision to pull out from the area and said it had put aside P20 billion (€335 million) for constructing a logistics complex within the harbour.
There are plans to build a fuel depot as part of the complex.
Although Petron is leaving the area, Pilipinas Shell Petroleum Corp. and Chevron Philippines (Caltex) have insisted to the Supreme Court they keep their Pandacan operations by saying that relocating would be costly.
Shell and Caltex use an existing pipeline for oil delivery while Petron uses the cheaper method of transporting fuel via barges.
Shell has argued that Petron’s departure is a ‘complete turnaround’ on its original decision and that the move will jeopardise future development at the Pandacan terminal. Shell says it has been forced to conduct an ‘in-depth study on the implications of the foregoing manifestation by intervener Petron to the former’s continued operations in the Pandacan terminal’.
However Petron said in a statement that the move was a ‘valid enactment’.