Philippine secures Indonesia oil supply

The Philippine government secured last week the commitment of Indonesia's Pertamina to supply the Philippines with oil if tension in the Middle East escalates into war, BusinessWorld reports, citing a statement from state-owned Philippine National Oil Co (PNOC).

In the report PNOC president and chief executive Thelmo Cunanan said the company has finalized the details of a commercial arrangement with Pertamina. The deal aims to cushion the impact of a possible cut in oil supply from the Middle East in the event war erupts in Iraq.

"Indonesia through Baihaki Hakim, president of Pertamina, has committed to provide additional oil supply for the country (Philippines). This will provide us with a back-up contingency plan to ensure security and reliability of oil supply in the domestic market," Cunanan said.

The report also quoted Energy Secretary Vincent Perez as saying Pertamina's commitment is a breakthrough in government efforts to find alternative oil sources. (*)