Philippine Court Orders Oil Depot Out of Manila

By Cris Larano

MANILA--The Philippine Supreme Court on Tuesday overturned a 2009 city ordinance that allowed a sprawling oil depot run by three of the country's largest oil firms to continue operating the facility in a densely populated district in Manila and near the Malacanan presidential palace.

The 2009 ordinance reclassified the district of Pandacan for heavy industry use, overturning an ordinance passed by the City of Manila shortly after the terror attack in the U.S. in September 2001. The City of Manila had classified the area for commercial use to force the oil depot out, on fears it could be a target for terrorists.

A group of lawyers questioned the legality of the 2009 ordinance, saying it doesn't protect public welfare given that the depot is a "potential magnet for terror attack" that could claim hundreds of lives.

The Supreme Court gave the three oil companies--Petron Corp. (PCOR.PH), Pilipinas Shell and the local unit of Chevron Corp.--45 days to submit their relocation plan to a tribunal.

The three oil companies have earlier said they are ready to move out of Pandacan depot, which supplies the requirements of metropolitan Manila and nearby provinces. Some have raised concern that the relocation could mean increases in the price of fuel.

Petron, in particular, has said the transfer wouldn't affect fuel prices even though the relocation would cost around 15 billion pesos ($333 million) to complete.

Write to Cris Larano at [e-mail]

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