ut oil supplies to Taiwan in retaliation for a possible suspension of investment in the Middle East nation's independent water and power production (IWPP) project. "I've never heard of this," said Hsieh Fa-da during a hearing of the Economics Committee of the Legislative Yuan, adding such a retaliatory measure would be "impossible" based on his knowledge of Taiwan's business dealings with Saudi Arabia.
Hsieh made the remarks after the United Daily News yesterday reported Saudi Arabia did not rule out launching retaliatory measures over a possible suspension of investment by Taiwan Power Co., Taiwan Water Corp. and Taiwan Cogeneration Corp. in the country's IWPP project.
The three companies will likely miss the Jun. 2 deadline for submitting bids, the report said, as the Taiwan Cabinet has now entered a transitional period prior to the inauguration of President-elect Ma Ying-jeou and a new Cabinet on May 20.
The Ministry of Economic Affairs, meanwhile, said the Legislative Yuan should decide whether investment in the project should be made, the report said.
In the hearing yesterday, Hsieh stressed oil procurement and IWPP investment were two separate issues and should not be linked together. "Even if we suspend investment in the country's IWPP project, it would not impact Taiwan's procurement of oil from Saudi Arabia," he said.
CPC Corp., Taiwan's largest gasoline supplier, meanwhile said it imports Saudi oil through ARAMCO, the country's state-run firm that has long enjoyed an international reputation.
"CPC has signed a long-term contract with the firm and has developed a good relationship with this company over the last decades. The contract would not be terminated by any one side," CPC said. "The public should not panic over this."
CPC also said as a precautionary measure, the company is seeking to contact Saudi authorities on this matter through Taiwan's representative office in the country.
As Saudi Arabia is Taiwan's major source of oil import, a retaliatory measure by the country to cut oil supplies would cause devastating impact on the Taiwanese economy, said legislators of the committee.
The lawmakers questioned the source of the report, speculating whether the source had a vested interest in seeing the investment passing the Legislature. The investment will come from taxpayers' money.
