Sat May 13, 2017 10:40AM
President of Philippines National Oil Co. (PNOC) Pedro Aquino talks to reporters on the sidelines of an oil industry exhibition in Tehran, May 13, 2017. (Photo by Shana)
President of Philippines National Oil Co. (PNOC) Pedro Aquino talks to reporters on the sidelines of an oil industry exhibition in Tehran, May 13, 2017. (Photo by Shana)

The Philippines plans to buy 250,000 to 260,000 barrels per day of oil for use in a new refinery from Iran, President of state-own Philippines National Oil Co. (PNOC) Pedro Aquino says. 

Aquino, who is currently in Tehran to attend an international oil industry exhibition, outlined on Saturday his country’s plans for cooperation on developing two Iranian oilfields as well as building an LNG plant in the Islamic Republic.

He said talks have been held with the National Iranian Oil Company (NIOC) to provide feedstock for a new 400,000 barrel per day refinery which is being built in the Philippines.

The new refinery, expected to be launched in the next three years, will be compatible with a variety of Iran’s light and heavy crude oils. However, if other refineries show readiness, purchases from Iran will take place sooner.

Aquino said his country had also signed a memorandum of understanding to develop phase 3 of Dorkhovin and Pazanan oilfields in Iran.  

PNOC is one of the 11 companies in a consortium of international companies, known as Pergas, which has signed a non-disclosure agreement with the National Iranian South Oil Company (NISOC) for carrying out studies on the Karanj oilfield in Khuzestan province.

"A billion dollars needed to develop Karanj oilfield has been provided by the Pergas international consortium," IRNA news agency quoted him as saying.

"We are currently in talks with Iran to allocate a gas field to provide feedstock for an LNG plant," he said, adding the two sides had also signed an MoU to buy 2 million tonnes of LNG a year from Iran.

Pergas head Colin Rowley said he expected studies on Karanj and Shadegan, another oil field in Khuzestan, to be completed in August and their development agreements signed in September.

For their development, the two fields are estimated to require about 2 billion dollars which has been raised by the consortium, IRNA quoted him as saying.