Background prompting the directive
- The Letter cites an OAPEC decision issued in Kuwait last December 25, 1973.
- The OAPEC decision provides that Arab countries shall export oil to friendly countries “according to their actual needs” even if the level exceeds September 1973, while requiring that Arab oil “should not be re-exported outside their countries” and “does not substitute for non-Arab oil”.
- The OAPEC decision is stated to have been officially transmitted to the Philippine Government through Ambassador Narciso Reyes.
- The Letter states that the decision has been confirmed officially through the Philippine Government’s permanent representative in the United Nations.
Policy expectation for Philippine national supply
- The Government now expects all the oil companies and refineries in the Philippines importing crude oil and other oil products from Arab countries to secure for the Philippines all non-participating oil for total national consumption.
- The expectation is framed as an implementation of the OAPEC conditions that Arab oil should not substitute for non-Arab oil.
- The Letter directs notification of this expectation to oil companies and refineries importing from Arab countries.
Notification and compliance stance
- The Chairman of PNOC is instructed to notify all oil companies and refineries in the Philippines importing crude oil and other oil products from Arab countries.
- The Government expects that, given the history of cooperation, there will be no need for further steps by the Government to protect its interest in light of any failure by oil companies or refineries to implement the Arab countries’ decision.
- The directive is operational: it requires the Government’s expected procurement of non-participating oil for the nation’s total consumption.
Information gathering and reporting
- PNOC is directed that the Government will obtain from oil companies or refineries the information, data and statistics on crude oil and other oil products brought into the Philippines.
- The information required must cover deliveries “in any form or in any capacity whatsoever”.
- The Chairman of PNOC must report directly to the President all developments on the matter.