July 23, 2008

By Bill Jaynes
The Kaselehlie Press

A bit more information on the deal between Mobil Oil of Micronesia, Inc. and FSM PetroCorp has been released. The deal has been in process for over a year. According to a Mobil press release Mobil has turned over all of its assets in the FSM to FSM PetroCorp the new corporation in the FSM that will provide fuel services in the future. The release said that arrangements are still underway "to incorporate the fuel supply needs of Kosrae".

The deal is done for the most part.

On June 30 MOMI's assets in Yap were transferred to FSM PetroCorp. On July 13, MOMI's assets in Chuuk were transferred. On July 19, MOMI's assets in Pohnpei were transferred to PetroCorp. Kosrae has had its fuel needs supplied by SK, Incorporated. The arrangements in that state are yet to be finalized.

A farewell party for Mobil employees was held at Cliff Rainbow Hotel and Restaurant in Pohnpei on Friday, July 18.

Fuel supply in Chuuk, Pohnpei, and Yap is now the responsibility of FSM PetroCorp.

There still has been no official or even unofficial word from the FSM Government on the status of FSM PetroCorp. We were referred to the FSM Public Information Officer for information on PetroCorp.

The law that established PetroCorp has a provision under section 220 that requires all minutes of the meetings to be made available to the public upon request. We were not able to ascertain whether or not the Board of PetroCorp has had any formal meetings or whether the arrangements to assume control of MOMI's assets in the US were handled outside of a formal setting.