Petron says it has no obligation to cover cost of oil spill cleanup

Petron Corp. said on Wednesday it has no obligation to cover the cost of cleaning up the massive oil spill off Guimaras Island in central Philippines, nor even to extend economic aid to the communities devastated by the tragedy. "Petron is not under any legal or contractual obligation to set aside P10 billion in economic aid or to post a P100-million bond to pay for cleanup as under pertinent Philippine Coast Guard circulars, it is the spiller who is primarily responsible for conducting cleanup operations with the supervision of the Coast Guard," the oil firm said in a disclosure to the Philippine Stock Exchange (PSE). "Petron, as mere cargo owner, did not cause the spill and had no part whatsoever in the operation of the vessel which met the unfortunate incident," the firm said. A publicly listed company, the Philippine government owns 40 percent of Petron. Another 40 percent is owned by Saudi Aramco, and the balance of 20 percent, by public shareholders. A mixed group of government and Aramco representatives compose the board of directors of Petron, which remains a market leader with 40 percent control of the retail petroleum market. Petron's network of 1,255 gasoline stations across the nation is the largest among all local petroleum dealers. Fisherfolk's plea According to newspaper reports, fisherfolk alliance Pambansang Mamamalakaya ng Pilipinas (Pamalakaya) has urged Petron to set aside P10 billion in economic aid for those affected by the oil spill at the Guimaras Strait. Vice Admiral Arturo Gosingan, commandant of the Philippine Coast Guard (PCG), said his office was also planning to demand a P100-million bond from Petron to cover the initial cost of cleaning up the massive oil slick. The MT Solar I, owned by Sunshine Maritime Development Corp., on August 11 sank 24 km off the Guimaras coast. Petron had chartered the MT Solar I to load some two million liters of industrial fuel from the Limay port in Bataan to Zamboanga. Petron said that the ship was resting at the bottom of the sea floor some 640 meters or 2,100 feet below the ocean's surface. It added that in recent memory, 2,100 feet is the greatest depth any oil tanker has ever been sunk. Even as it disavows contractual obligation to bankroll the cleanup, Petron said that because of its sense of corporate social responsibility, it was"doing everything possible to contain the spill and clean up the areas where the oil has contaminated the coastlines and inlets, as well as in the conduct of relief operations." Inspection Petron said it would bring in a Japanese salvage company, Fukada Salvage & Marine Works Co., Ltd., to inspect the sunken MT Solar I. The salvage ship of Fukada is based in Okinawa , Japan, and might take three days to reach the vicinity of Guimaras Island. Petron said it has been coordinating with the Protection and Indemnity Club (P&I), which will pay for the engagement. P&I is the marine insurance of Sunshine Maritime which owns MT Solar I. It covers third party liabilities and expenses arising from owning ships or operating ships as principals. Petron will also assist in securing customs and other government clearances. "While our aerial surveys indicate that the leak has stopped, we have been gravely concerned about the possibility that the oil remaining in the vessel will continue to be released into the environment," Petron chairman and CEO Nicasio Alcantara said. "With the arrival of ship we hope to establish the real condition of Solar I and put to rest all this speculation."-GMANews.TV