Eastern Petroleum Fernando L. Martinez asserted he assumed that the EO may have intent on stimulating investments in oil and gas exploration for the long-term needs of the country; and that it could be an office to be placed under the supervision of the Department of Energy.

Of course, he laid down the argument disregarding the fact that these socalled policy objectives of ‘stimulating and enticing private investments’ have also been fully provided for in all existing statutes, laws and even various Executive Orders that governs the energy sector.

Martinez, who claims to be voicing out the position of all members of the Independent Philippine Petroleum Companies Association (IPPA), admitted that he cannot go too far in interpreting the measure; as he pointed to President Arroyo as the author of EO 474.

The IPPCA chairman said he is open to an added regulation for the oil sector placed under the Office of the President; as he stopped short of saying that the DOE has failed in the oil deregulation process because of its penchant for asking ‘social considerations" every time there are drastic price adjustments. When asked, the other IPPCA members preferred to keep mum over the issue.

Martinez also vouched that Energy Secretary Raphael P.M. Lotilla and Philippine National Oil Company (PNOC) president Eduardo V. Mañalac were consulted in drafting the controversial measure; although the two officials already denied having been informed of the EO’s existence and were in fact both taken aback when it first came to their knowledge through the media. (MMV)

The larger oil companies are apparently going against the tide that their smaller counterparts have been taking on; noting that since they are inclined to be investing here for the long-term, they are predisposed to tackling issues and policy issuances of the government with utmost prudence.

Oil firms affiliated with the Philippine Institute of Petroleum (PIP) emphasized that since "political risk" is one of the hurdles for entry of new investments in the country; it matters that there are established institutions (created by legislated acts) that take care of judicious capital poured in by private investors; and not a body that would just be as easy to sling out according to the wishes of the next President or administration.

It would be noted that Malacanang earlier scrapped several government-run agencies and entities as part of the austerity measures the government is adopting; and these are mostly under EO creations; thus, this is one thing that the investors are avoiding, especially at this time when political situation is again too volatile and also because the proposed Philippine Strategic Oil, Gas, Energy Resource and Power Infrastructure Office (PSOGERIPO) wants to assume too heavy-handed regulation for the entire energy sector.

Setting aside all of these, what triggered the rage of majority in the energy sector was that they were not consulted when the EO was drafted; with even the Energy Secretary being bypassed in the process. At the same time, there is no responsible personality coming out in the open until now to explain what is the real intent of the EO and what policy regulation it actually wants to carry out.

A congressman-ally of President Arroyo has already branded the measure as a ‘policy quicksand’; and that Malacanang has bowed down to public pressure, so it was compelled into deferring its implementation, noting that careful study of the measure’s provisions and functions would have to be undertaken first. (MMV)