SCC exec cautions govt on Petron talks

Saipan Chamber of Commerce president Charles V. Cepeda has cautioned the administration “to be careful” in its fuel supply dealings with a new oil company, Petron, keeping in mind that two companies, Shell and Mobil Marianas, have been serving the CNMI for years now.

Cepeda said the government should also hold dialogues with Shell and Mobil and see if they could offer what Petron could provide the CNMI.

“I do want to say that we have to be careful with our current supplier. Mobil and Shell have been here for a long time and have contributed so much to the local economy. We have to protect the local suppliers. I’m sure Shell and Mobil would be willing to sit down with the administration, too,” said Cepeda.

Shell and Mobil are members of the Chamber.

Gov. Benigno R. Fitial held exploratory talks last weekend with visiting executives of Petron Philippines last weekend on proposed fuel farm on Saipan.

Fitial met with Petron chairman Nicasio Alcantara, Petron president Khalid Al-Faddagh, and Petron officer-in-charge of supply and operations Felimon Antiporda.

The Fitial administration said the governor’s talks with Petron is currently one of the significant developments in the administration’s attempts to get power production fuel at lower prices.

The parties reportedly discussed the possibility of Petron supplying aviation fuel to airlines operating in the Northern Marianas.

Cepeda said he was among the local representatives who met with the visitors at the Governor’s Office Friday.

“It was more of an introductory meeting. Based on their actions, they’re interested in the CNMI. By personally coming up here, they showed that their intentions are good,” said Cepeda.

He said Petron’s capability as an oil supplier is quite impressive, based on the presentation. The question, however, is whether Petron’s fuel would actually be cheaper than existing rates in the CNMI.

“If there’s a huge savings out of Petron, then that’s fine. But right now, we don’t know the figures,” he said.

Currently, Mobil Oil Marianas supplies fuel to the Commonwealth Utilities Corp.’ power plants and the airlines.

Most of the service stations on the islands also sell Mobil products.

CUC’s fuel purchases from Mobil amounts to some $60 million a year.

Further, Cepeda said that the government should also make sure that if it pursues a fuel farm project, then it should be funded by a private firm.

“If the government feels there’s a need for a fuel farm, it should be at no cost to the government,” said Cepeda.

Petron is 40-percent owned by the Philippine government, 40-percent owned by Saudi Aramco, and 20-percent owned by stockholders.