Pilipinas Shell Petroleum Corp. said it is preparing to shut down its 60,000 tons per year automated lube blending oil plant in Pandacan by November in compliance with a Supreme Court ruling ordering oil companies to remove their depots out of Pandacan.

Ordinance No. 8027, rendered in November last year, directed Shell, Petron Corp. and Chevron Philippines Inc. to remove their oil depot facilities from Pandacan, Manila and not merely cease operations. The space occupied by the depots has been re-classified from industrial to commercial, and Manila Mayor Joseph E. Estrada says that the city plans to open the area to businesses to stimulate employment.

Pilipinas Shell is the last oil player moving out of the Pandacan depot since the Supreme Court issued a decision last November to close down the facility.

Petron Corp. is the largest oil refining and marketing company in the Philippines, supplying more than a third of the country’s oil requirements. On March 30, 2012, Petron acquired ExxonMobil's downstream business in Malaysia in with XCEL Petroleum. In January 2013, Petron officially opened their Malaysian operations, rebranding all Esso and Mobil stations across Peninsular Malaysia.

Chevron reportedly stopped using the Pandacan facility last year and has optimized its existing facilities across the country, including its main import terminal in Batangas, where it used to operate a refinery.

Shell country chairman Ed Chua said the company would have to abide with the Supreme Court decision ordering oil companies to remove their depots out of Pandacan. Chua earlier said Shell will be completely out of the Pandacan depot by November, noting that workers started dismantling the facility in July.

“We have to comply with the Supreme Court ruling. We will have to import lubricants from neighboring countries” Chua said.

Shell officials assured all of its 14 oil tanks would be dismantled at the Pandacan depot by November.

Shell has been resisting the Pandacan oil depot removal, saying it would raise pump prices and create logistical problems.

Chua said Shell would absorb the price difference arising from the transfer of the depot from Pandacan to Batangas and downplayed any possible price increase.

Shell lubricants accounts for about 20 percent of the company’s total business in the Philippines, he said.