Tuesday, January 3, 2017

PNOC seeks clearance to redevelop Pandacan depot



By Danessa Rivera (The Philippine Star) | Updated January 3, 2017 - 12:00am

MANILA, Philippines – Philippine National Oil Co. (PNOC) is looking to negotiate with the city government of Manila on how best to develop the idle 11.89-hectare Pandacan oil depot.
The state-run firm is planning to redevelop its Pandacan property to its best economic use since it is located at the heart of Manila, PNOC president Reuben Lista said.
“We have a property in Pandacan. Petron’s oil depot, that’s ours. We are also studying how to utilize it,” he said.
The Pandacan property was originally leased to Petron Corp. – the country’s largest oil refiner and marketer – for 25 years from Sept. 1, 1993 to Aug. 31, 2018.
The 11.89-hectare land is part of the 33-hectare depot which used to house the storage facilities and distribution terminals of other major oil companies such as Chevron Philippines Inc. and Pilipinas Shell Petroleum Corp.
But in 2015, the Supreme Court ruled the oil firms should remove the depot from Pandacan.
Moreover, a Manila City ordinance reclassified the area from heavy industrial to high intensity commercial/mixed-use zone.
PNOC has decided to exclude the Pandacan property in the renewal of lease agreement with Petron for bulk plants on September 2018.
“Petron wanted to negotiate [its lease] but it was thumbed down by the Supreme Court. So we’ll have to negotiate probably with the city government,” Lista said.
The Pandacan property will instead be developed according to its best economic use and development trends in the vicinity, PNOC said.
Earlier, PNOC said it is developing its major land assets from idle lands into various energy centers to boost its cashflow.
Among these assets include two properties in Mabini and Bauan in Batangas.
In Mabini, PNOC has a 19.22-hectare Energy Supply Base, of which 10.55 hectares are leased to its unit PNOC-Exploration Corp.; 4.27 hectares rented by Petron as bulk plant while the remaining 4.4 hectares are hilly/eroded portions.            

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