Philippines seeks oil supply assurance from Asian neighbors

Philippines seeks oil supply assurance from Asian neighbors

Agence France-Presse, Manila

The Philippines is seeking commitments for steady oil supplies from Asian neighbors amid a possible embargo from the 48-member Organization of Islamic Conference (OIC), an official said Thursday.

Foreign Secretary Blas Ople had already held talks with officials from Indonesia, Brunei and Malaysia on oil supply security, said Rey Parungao, a member of a government panel preparing contingency plans in case of a war in Iraq.

OIC members earlier this week discussed in Kuala Lumpur the possibility of using oil as an instrument to fend off a US-led war against Iraq.

Malaysian Prime Minister Mahathir Mohamad warned that meddling with the oil market could backfire on poorer nations, but said it must be considered.

Parungao warned of dire consequences on the Philippine economy and other poor nations, as well as industrialized countries, if the OIC threat materializes.

"This is fearsome, really fearsome if this is a pronouncement coming from such leaders as Mahathir," he said.

The Philippines imports the vast majority of its oil from the Middle East but in recent months, officials have been seeking alternative sources in the event that supplies are affected by the outbreak of war in Iraq.

Last month, oil companies in the Philippines were told to keep a minimum inventory of up to 30 days in oil supplies to avert a shortage in case war breaks out.