AC Energy says Iloilo oil spill caused by ignition that ruptured fuel tank

The Iloilo oil spill last week was caused by a rupture in the barge's fuel tank, initial investigation of Ayala-led AC Energy Philippines Inc. revealed.

In a regulatory filing, AC Energy said the company's power barge 102 discharged fuel oil at around 3:00 p.m. last Friday, July 3.

"The root cause is yet to be determined, but initial findings reveal that the discharge is attributable to ignition of fuel oil in storage which ruptured the barge’s fuel tank," the disclosure read.

"The Company immediately activated containment protocols through containment booms but due to strong ocean waves, some of the fuel oil escaped the confinement area," it added.

AC Energy said the leakage was contained at around 10:00 p.m. the same day, after 170 combined personnel of the company the Coast Guard were deployed.

"After containment, the Company and the Coast Guard immediately started recovery of the remaining floating residue," it said.

The company said recovery capacity was also increased with additional oil skimming equipment from Shell Philippines the following morning, as well as another from the Company's Power Barge 103 the next day.

AC Energy said it has also tapped Harbor Star, a leading maritime services provider, to finish the clean-up of both the waters and the coastline estimated to take 10 to 15 days.

It will begin with the inlet areas, followed by the coast, and then any offshore areas to recover and safely disperse any remaining oil residue.

AC Energy said some 120 households within the neighboring area have been relocated to the Barangay Obrero Elementary School as protection against the fumes brought about by the prevailing winds.

"The Company continues to provide these families with food, health care, PPEs and other necessities, and is working on further relocation to other nearby schools to observe social distancing," it said.

"The Company will also engage third-party experts to determine the cause of the explosion in order to avoid similar situations in the future," the company said.

For its part, the Department of Environment and Natural Resources (DENR) said it will impose fines on AC Energy.

"We are committed to exert all available means to clean-up any remaining residue as soon as possible and support the affected communities," the company said.

Shares of AC Energy closed Monday at P2.24 apiece, down by 7 centavos or 3.03% from last Friday's finish of P2.31 per share. —LDF, GMA News