As takeover of oil facilities becomes threadbare in the political front, state-controlled Philippine National Oil Company-Exploration Corporation (PNOC-EC) jumped into the fray and is showing bold front that it would be able to plug the country’s oil needs amid forecasts of supply shortages.

“If there will be problem of supply as voiced out by the oil companies, PNOC-EC is ready to supply oil,” company chairman and former Congressman Jacinto Paras said.

The PNOC chair disclosed that the plan is to takeover the oil firms’ depots for PNOC-EC’s shipments, and the company also plans to supply directly to the gasoline stations of the private oil companies. “Under the (Oil Deregulation) law, whenever there is a shortage or danger that oil will not be supplied, government shall take over those facilities, in their depots we will place our imports, we will use their facilities and ship directly to the stations,” he stressed.

Paras noted that they have contacts in Asia and the Middle East, and the only thing the company needs to secure on their plan to supply oil would be President Gloria Macapagal Arroyo’s blessings.

“We can supply within 10 days upon order, just right prior to any supply of oil is reduced. The only thing that is hindering (us) is a good signal from Malacañang,” Paras emphasized.

Nevertheless, the takeover attempts on oil facilities as articulated by government officials, is viewed by the business community as “very scary” and an extremely dangerous proposition.

If the government fails in handling the matter judiciously, foreign businesses cautioned this early that it is not far-fetched that such will result in near-term investor exodus. “That’s a very dangerous precedent. It is sending very bad signal to the international investing community,” a source said.

Meanwhile, PNOC-EC claimed that it is already supplying oil to Bangladesh and about to strike a deal with China, though it did not specify where it has been sourcing its supply.

“(PNOC-EC) has already been supplying oil to Bangladesh and is about to supply to China, it is not hard for it to supply oil to its own country if emergency exists,” Paras added.

He further emphasized, if and when the President allows them to supply oil, PNOC-EC would want to re-exist as an oil firm competing with the players in the industry, whichever among them would be able to survive the lingering financial squeeze sanctioned by the imposition of Executive Order 839.

Long before the imposition of the price freeze, PNOC-EC already advanced pronouncement that it wants to engage in the downstream side of the business by putting up retail stations to break into the market’s competitive play.