Title
Law on Oil Exploration and Development
Law
Presidential Decree No. 8
Decision Date
Oct 2, 1972
Presidential Decree No. 8 aimed to attract foreign companies to explore and develop the Philippines' oil resources through service contracts and joint ventures, providing provisions for financing, repatriation of capital, and exemptions from certain laws, regulations, and ordinances.
A

Need for Foreign Investment and Expertise

  • Highlights the necessity of attracting foreign companies due to the huge capital, advanced technology, and experience required for oil exploration.
  • Foreign companies may participate through partnerships or joint ventures with the government or the private sector.

Limitations of Existing Laws

  • Acknowledges that existing laws have constraints that have limited the attraction of foreign oil exploration companies to invest in local ventures.

Pending Legislative Measure

  • References the pending Senate Bill No. 531 entitled "AN ACT TO PROMOTE THE DISCOVERY AND PRODUCTION OF INDIGENOUS PETROLEUM AND APPROPRIATING FUNDS THEREFOR" which was certified as urgent.

Government Objectives

  • Emphasizes that the measure aligns with government objectives to establish a new social and economic order benefiting the country and its people.

Presidential Authority and Decree

  • The President, exercising constitutional and emergency powers under Proclamation No. 1081 and related general orders, promulgates the cited measure as law.
  • The measure is adopted in full and made part of the law of the land.

Effectivity

  • The decree takes immediate effect upon promulgation.

Summary of Legal Impact

  • The decree establishes a legal framework promoting indigenous petroleum discovery and production.
  • Attracts foreign capital and expertise through provisions allowing partnerships and joint ventures.
  • Addresses prior legal limitations hindering oil exploration investments.
  • Demonstrates exercise of presidential decree powers in absence of Congress during the state of emergency.

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