SEC. 5. Powers and Functions of the Company. — The
Company shall have the following powers and functions:
(a) To undertake, by itself or otherwise, exploration,
exploitation and development of all areas of oil or petroleum deposits
in the country, including surveys and activities related thereto;
(b) To establish, maintain, control and direct in any area
within the national territory as it may deem appropriate, a petroleum
base territory and construct install or maintain therein duty-free ports
adequate for the use of vessels engaged in off shore oil drilling
operations, airports sufficient for direct service flights,
telecommunications center and ship-to-shore communications facilities,
provide electric power and fresh water supply, and perform such other
acts as it may deem necessary and advantageous or convenient to such
operations;
(c) To lease, at reasonable rates, to private domestic entities
or persons such portion or portions of the petroleum base, including
facilities therein, under its administration, as may be necessary for
warehousing, logistical centers for the storage of oil drilling and oil
well supplies, fabrication of offshore drilling components and
structures, mechanical repair facilities and the like; spaces for the
office, habitation and recreational requirements of personnel directly
engaged in offshore oil drilling and in manning the various logistical
support operations and their immediate dependents;
(d) To undertake all other forms of petroleum or oil
operations;
(e) To enter into contracts, with or without public bidding,
with any person or entity, domestic or foreign, and with governments for
the undertaking of the varied aspects of oil or petroleum operation,
including the acquisition, by way of purchase, lease or rent or other
deferred payment arrangements of equipment and/or raw materials and
supplies, as well as for services connected therewith under such terms
and conditions as it may deem proper and reasonable;
(f) To borrow money from local and foreign sources as may be
necessary for its operations;
(g) To invest its funds as it may deem proper and necessary in
any activity related to oil or petroleum operations, including in any
bonds or securities issued and guaranteed by the Government of the
Philippines;
(h) To purchase, hold, alienate, mortgage, pledge or otherwise
dispose of the shares of the capital stock of, or any bond, security of
other corporations or associations of this or any other country; and
while the owner of said stock, to exercise all the rights of ownership,
including the right to vote thereon;
(i) To hold lands and acquire rights over mineral lands in excess
of the areas permitted to private corporations, associations and persons
by statute;
(j) To engage in export and import business of oil or petroleum
and its derivatives, as well as in related activities;
(k) To acquire assets, real or personal, or interests therein,
and encumber or otherwise dispose the same as it may deem proper and
necessary in the conduct of its business;
(l) Subject to existing regulations, if it deems necessary, to
establish and maintain such communication system, whether by radio,
telegraph or any other manner, without the need of a separate franchise
therefor;
(m) To determine its organizational structure, and the number and
salaries of its officers and employees;
(n) To establish and maintain offices, branches, agencies,
subsidiaries, correspondents or other units anywhere as may be needed by
the Company and reorganize or abolish the same as it may deem proper;
(o) To exercise the right of eminent domain as may be necessary
for the purpose for which the Company is created;
(p) Subject to payment of the proper amount, to enter private
lands for the purpose of conducting geological or geophysical studies in
connection with petroleum exploration and exploitation;
(q) To acquire easement over public and private lands necessary
for the purpose of carrying out any work essential to its petroleum
exploration and exploitation, subject to payment or reasonable
considerations;
(r) To establish and maintain a technical educational system for
the sustained development of the necessary manpower to manage and
operate its affairs and business;
(s) To adopt a code of by-laws to complement this Charter;
(t) To adopt and use a corporate seal which shall be
judicially noticed;
(u) To perform such acts and exercise such functions as may be
necessary for the attainment of the purposes and objectives herein
specified;
(v) To promulgate such rules and regulations as may be
necessary to carry out the purposes of this Decree; and
(w) To perform such other functions as may be provided by law.
