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MANILA – Amid a standoff at Manila City Hall over the Pandacan depot, oil companies on Friday appealed to the City Council to reconsider its decision banishing their facilities from the capital.
In a press briefing, Roberto Kanapi, Pilipinas Shell Petroleum Corporation vice president for corporate communications, said the company respects the legislative process but maintains that the facility "remains the safest area for distributing products to Metro Manila."
"We do not share the premise of the council on Pandacan as a disservice to the community," he said.
The Pandacan oil depot supplies 1,800 fuel stations in Metro Manila and nearby provinces, 70 percent of the shipping industry's fuel requirements, 90 percent of lubricants nationwide, and 75 percent of aviation fuel needs in the country.
Shell - along with Chevron (formerly Caltex) Philippines Inc. and Petron Corporation - jointly operate the facility.
While Shell and Chevron have been steadfast in maintaining their operations in Pandacan, Petron earlier laid out plans to relocate its storage facility in two to three years.
Earlier, the Manila City Council voted to reclassify the Pandacan area from an industrial zone into a commercial one. This would have forced the oil companies to shut down the Pandacan oil depot.
Mayor Alfredo Lim however vetoed the ordinance, which in turn led the City Council to vote 28-8 overriding the local chief executive.
"The council has overruled the mayor’s veto, so now we’re waiting for mayor to make his final step," Kanapi said, adding that there are "broader implications" of the spot zoning implemented by the Manila legislators on investor confidence in the Philippines.
This view was also shared by Chevron, which also maintained the safety of the Pandacan oil depot, where they have been operating for more than 80 years.
“Mandating the oil companies to exit from Pandacan may dampen the investment climate by creating an uncertain business environment. We appreciate that Mayor Lim recognizes the value of providing a stable regulatory environment in the City of Manila and that he understands the relevance and benefit of the facility not just for Manila, but to the country as a whole,” Raissa Bautista, Chevron manager for policy, government and public affairs, said.
"[Chevron] hopes that the City Council will ultimately appreciate the value of the oil depots, the safe operations and the need for a stable regulatory environment," she added.
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