Petron Press Release, 08/23/2006

PETRON BRINGS IN JAPANESE SALVAGE EXPERTS TO INSPECT M/T SOLAR 1
Wednesday, August 23, 2006

Petron Corporation said that it would bring in a Japanese salvage company Fukada Salvage & Marine Works Co., Ltd. to inspect the sunken vessel M/T Solar 1 which is estimated to be under 640 meters of water (2,100 feet).

The salvage ship of Fukada is based in Okinawa, Japan and it will take 3 days for it to reach the site of Guimaras Island. The ship is equipped with state of the art monitoring equipment that provides images of the vessel at the ocean floor as it is scanned utilizing a Remotely Operated Vehicle (ROV) that will allow it to search the seabed and determine the position and condition of M/T Solar 1.

The company has been coordinating with the Protection and Indemnity Club (P&I), which will pay for the engagement. P&Iis the marine insurance. Petrol will also assist in securing customs and other government clearances of Sunshine Maritime which owns M/T Solar 1. It covers third party liabilities and expenses arising from owning ships or operating ships as principals

“While our aerial surveys indicate that the leak has stopped, we have been gravely concerned about the possibility that the oil remaining in the vessel will continue to be released into the environment,” Petron Chairman and CEO Nicasio I. Alcantara said. “With the arrival of ship we hope to establish the real condition of Solar 1 and put to rest all this speculation.”

Alcantara added that the result of the underwater survey will dictate the next course of action Petron is going to take.

It has been very difficult to ascertain the real condition of M/T Solar 1 because of the depth. In recent memory, 2,100 feet is the greatest depth any oil tanker has ever been sunk.

At sea, Petron has deployed equipment which includes W.I.S.E. (Waterborne Industry Spill Response) tugboats, oil spill booms, absorbent pads, oil skimmers, dispersants etc. Four oil spill response teams have been assisting in clean-up operations.

The company has likewise been very active on the ground organizing the communities affected under Petron’s Ligtas Guimaras program to help in clean-up operations onshore. Under a “Cash-for-Work” scheme, Petron has been employing an average of 740 people daily. As of August 22, the clean-up teams have already cleared 25 kilometers of shoreline and it is estimated that it will take 30-45 days for the clean-up to be completed.

“While we have been focusing most of our efforts to clean-up operations, we are taking a more strategic look at developing long-term solutions to rehabilitate damaged areas in close partnership with University of the Philippines–Visayas, World Wildlife Fund, and Siliman University,” Alcantara said. “We are committed to stay in Guimaras as long as necessary.”