News Release

FSM Information Services via FSM PetroCorp Palikir, Pohnpei March 2, 2009

Petrocorp Micronesia announced today that it had commenced servicing the aviation sector in the State of Yap. The Corporation now provides aviation services and products to three airports in the FSM. Aviation services and refueling operations commenced today following a review of its Yap operations by ExxonMobil Aviation and Continental Airlines.

"The transition could have been smoother but we were under time pressures so we did experience some service disruptions while we awaited Continentals inspection and verification of our systems and procedures. This has now been addressed and we can now focus on improving services and leveraging economies of scale in the FSM" says the Corporations Chairman, Mr. William Hawley.

Aviation products including Jet Fuels are among the most critical products that Petrocorp distributes from the standpoint of exacting quality requirements. Strict precautions are taken to see that these products are maintained to the proper specifications and delivered safely into aircraft in the same condition. Mr. Frank Perez, Continental’s nominated inspector completed the final review of systems, procedures and documentation this week.

"We have a strategic partnership with ExxonMobil Aviation (EMA) through a Technical Services Agreement ensures that we maintain product reliability through the diligent application of EMA quality assurance systems, however, the efforts of Mr. Perez and the Continental team were instrumental in minimizing any further disruptions in this transition" says Chairman Hawley.

Mobil Oil Micronesia Incorporated (MOMI) had ceased aviation refueling operations in Yap citing the small market with high costs did not continue to justify further investment in Yap. In 2004 a decision was made by the Yap State Government to invest in the facility and to train staff to ensure that essential air services to the State were maintained.

"Although MOMI continued to provide diesel and gasoline in Yap, a lack of aviation fuel drastically affected our access to essential air services. We experienced first hand the effect that this had on the people and businesses here in Yap, and had little alternative but to step in and provide the service. Any step backward toward embargo on cargo is not only against the spirit of the amended Compact, but an economic sanction of immeasurable proportions", says Yap State Governor Sebastian Anefal.

In January 2009 an agreement was signed by Governor Anefal and Corporation Chairman William Hawley for the transfer of aviation operations and services from the Yap Public Services Department to the Corporation.

"Petrocorp already operates two airport storage and refueling operations in the FSM, and have the assistance of ExxonMobil to support operations in Yap. We are pleased that we have been able to successfully transfer operations from the Public Works to a Corporation who’s primary role is the storage and distribution of petroleum products in the FSM" says Governor Anefal.

The personnel now responsible for Yap Aviation Services are Mr. Juanito Hasugulmal, the officer-in-charge of FSMPC’s Yap operations, Mr. John Gilsowuth and the Aviation Fuel Technicians Mr. John John Rumwol, Mr. John Noph, and Mr. Anthony S. Sigeyog.

For more information contact Petrocorp on +691 320 6364


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