The Philippines will sign bilateral agreements with three oil-producing countries as part of an oil contingency plan following tension in the Middle East.
It will be one Middle East country, one neighboring country, and one non-member of the Organization of Petroleum Exporting Countries. Persons who will be in charge of this program are Perez, Undersecretary Cyril del Callar.
The Philippines want to be prepared for any contingency that may arise in case of a Middle East crisis brought about by the refusal of Iraq to comply with the United Nations Security Council Resolutions. Under this agreement oil companies would be required to keep a certain level of inventory.
Mostly this policy will be focused on oil supply but not the prices. Perez plans to finalize within this month the agreements–one with a Middle East country, another with a neighboring country, and a third with a (OPEC).
The Philippines’s oil needs are less than 0.5 percent of the total world volume.
The energy department is planning to increase the country’s oil inventory by another 13 to 15 days from the current 62 days.