Purpose of Extension
- Allows holders additional time to upgrade their technical and financial capabilities.
- Aims to develop a viable exploration program consistent with the state policy to expedite discovery, development, and production of indigenous petroleum.
Conditions for Extension Eligibility
- Only applies to concessions that have complied with their work obligations and applicable implementing rules as of August 25, 1976.
- Holders must be technically and financially qualified according to rules issued by the Energy Development Board.
- Holders must have no unpaid deficiency obligations related to any concessions they hold.
Consequences of Non-Conversion
- No further extensions beyond December 31, 1976, will be granted.
- Concessions or applications not converted to service contracts by the deadline will be automatically cancelled.
- The areas covered by these cancelled concessions become part of the National Reserve Area.
Effective Date
- The decree takes effect immediately upon issuance on August 25, 1976.
Legal Authority
- Issued by the President of the Philippines under constitutional powers, amending Section 2 of Presidential Decree No. 782.