Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 334)
The short title of Presidential Decree No. 334 is the "Charter of the Philippine National Oil Company."
The declared policy is to promote industrial and overall economic development through the effective and efficient utilization of energy sources, including oil and oil-based resources.
The primary purpose is to assure an adequate supply of oil and petroleum products to all users to enable the unimpeded and efficient growth of the economy.
It includes actual exploration, production, refining, tankerage and/or shipping, storage, transport, marketing, and related activities concerning oil and petroleum products.
The PNOC can explore, exploit, and develop oil deposits, establish petroleum bases and facilities, lease portions of petroleum bases, enter contracts related to petroleum operations, borrow money, invest funds, acquire and dispose of assets, engage in export/import, exercise eminent domain, and promulgate necessary rules, among others.
Members are appointed by the President of the Philippines. Qualification includes being a natural-born Filipino citizen, at least 35 years old, and of established integrity.
The PNOC has a term of fifty (50) years from the issuance of the Decree, which is deemed renewed for an equal period unless dissolved by law sooner.
The capital stock is three million no-par shares. Two million shares are subscribed and paid for by the Republic of the Philippines, and one million shares may be subscribed by the government or government financial institutions.
No, officers and employees of the PNOC are exempt from the Civil Service Law, rules and regulations, and also from the Wage and Position Classification Office regulations.
The PNOC can hold lands and acquire rights over mineral lands in excess of those permitted by statute to private entities, enter private lands for geological studies upon payment, acquire easements for essential work, and exercise eminent domain as necessary.
The Secretary of Justice is the ex officio legal counsel of the PNOC and may designate a representative for this purpose.
The PNOC determines its organizational structure and the number and salaries of officers and employees. The Chairman and President are appointed by the President of the Philippines, while other officers are appointed by the Board of Directors.
The PNOC is entitled to all incentives and privileges granted by law to private enterprises engaged in petroleum or oil operations.
The PNOC must submit its annual report to the President within three months after the end of each fiscal year and provide periodic or other reports as required.