Philippine oil refiner Petron buys Russian crude, eyes alternatives

Petron Corp., the Philippines’ only refiner, has procured 2.48 million barrels of crude oil from Russia as the Southeast Asian nation scours the world for alternative suppliers to support domestic energy needs with the war in Iran raging.

“If the current crisis persists and alternative crude sources remain unavailable or insufficient, Petron may again be compelled to consider purchases of Russian crude oil to augment the national fuel supply,” parent San Miguel Corp. said in a statement to market regulators late on Friday.

The crude will augment Petron’s inventory of petroleum products until June, San Miguel said, adding that the purchases were made “strictly out of extreme necessity.”

On February 28, the same day that the US and Israel launched a military campaign against Iran, Petron was advised that one shipment of 2 million barrels of crude did not gain safe passage at the Strait of Hormuz as Iran announced its closure. A second shipment of 2 million barrels of crude was also cancelled on March 7 due to the heightened risk in the Red Sea and Strait of Hormuz, San Miguel said.

The Philippines, which sources nearly all of its oil requirements from the Middle East, is trying to find alternative sources to ease the supply crunch that has triggered an energy emergency declaration by the government. It’s also negotiating for fuel supply from Japan, China, South Korea and India.

Manila has said it had 45 days worth of oil supplies as of March 20.