Government of the Federated States of Micronesia

FSM and Mobil revisit fuel agreement

Palikir, POHNPEI (FSM Information Services): June 8, 2004 - Vice President Redley Killion and Executives of Mobil Oil Micronesia, Inc. (MOMI) have met for the review renegotiation of the Federated States of Micronesia - MOMI Fuel Supply Agreement.

Signed in July 1996, the FSM-MOMI Agreement provided the basis for Mobil fuel distribution in the FSM (Chuuk, Pohnpei and Yap). The Agreement also called for a review of the provisions of the FSM-MOMI every third anniversary.

On June 7 2004, Vice President Killion and the FSM delegation met with MOMI President Jeff C. Borja, in Guam for the 2nd triennial review of the Agreement. The review highlighted three issues of discussion:

  1. Amending the confidentiality agreement to specify liability for disclosure of MOMI business information to third parties;

  2. Financing guarantee in the event of MOMI clean up of oil spill that are not the fault of MOMI; and

  3. Equitable treatment of all MOMI customers.

In addressing the issue of oil spill, President Borja of Mobil Micronesia, requested the involvement of FSM's relevant agencies and office in the development of an emergency plan that would facilitate his side's assistance in non-Mobil related spills.

Both sides agreed that the issues be assigned to smaller working groups to enable a more comprehensive review of the concerns and with judicious solutions. Technicians were assigned from each side to report back by the established deadlines for each issue.

Headed by Vice President Killion, the FSM delegation included: Congressmen Nelson Moses and Jack Fritz, Kosrae Governor Rensley Sigrah - EPIC representative, Floor Leader Fernando Scaliem - Pohnpei Legislature, Speaker Joe Suka - Chuuk Legislature, FSM Consul General Samson Pretrick, Assistant Attorney General Emilio Musrasrik - FSM Department of Justice, Utility Corporation General Managers: Chuuk - Manny Mori and Pohnpei - Marcelino Actouka, James Movick - Micronesia Business and Professional Services(fishing industry) and Chief Financial Officer Melinda Espinosa - Pacific Missionary Aviation

Along with President Borja, the representative of MOMI included: Frances Diaz - Commercial Manager, Leo Manlapaz - Business Services Manager, Jim Rose - Operations Manager, Bernadette Valencia - Retail Manager and Cecil Bamba Suda - Public and Governmental Affairs Manager.