The Government of Philippines plans to develop its own oil reserves to reduce the country’s reliance on imported oil, decreasing exposure to price and supply volatility. This will be accomplished through the establishment of the Philippine Strategic Petroleum Reserve Program (PSRP). Under the implementing guidelines for the establishment of the PSRP, the Department of Energy (DOE) aims to construct a state-owned reserve of crude oil, refined petroleum products, and biofuels to improve the country’s fuel supply security. This will allow the government to respond to a severe worldwide supply disruption or deploy the Targeted Fuel Relief Program.
The Philippine National Oil Company (PNOC) has been tasked by the DOE with acquiring storage and blending capacity through construction, lease, or other acquisition options based on the agreed minimum and maximum volume levels that will be determined by the feasibility study and specified in the approved guidelines. The DOE has also tasked PNOC with acquiring the right supply contracts and product type portfolio that will allow it to secure the volume required to meet the PSRP’s goal. PNOC is also responsible for establishing the competence to distribute products and ensuring the availability of mobile distribution vehicles to address immediate disaster.
