Philippine oil refiner Petron buys Russian crude, eyes alternatives

Petron Corp., the sole oil refiner in the Philippines, has procured 2.48 million barrels of crude oil from Russia, marking a significant shift in the nation's energy sourcing strategy. This emergency purchase was announced by parent company San Miguel Corp., which stated the move was made 'strictly out of extreme necessity' to augment the national fuel supply. The decision comes after the war in Iran led to the closure of the Strait of Hormuz, blocking Petron's access to its traditional Middle Eastern suppliers. The company lost two shipments totaling 4 million barrels in late February and early March due to the heightened military risk, creating a critical supply crunch.

In response to the crisis, the Philippine government has declared an energy emergency. The nation, which historically sources nearly all its oil from the Middle East, is now actively scouring the globe for alternative suppliers. Petron has indicated that if the crisis persists, it may be compelled to make further purchases of Russian crude. Concurrently, the country is negotiating for fuel supply from Japan, China, South Korea, and India to build a more diversified and resilient energy portfolio. As of March 20, Manila reported it had just 45 days worth of oil supplies remaining.