FURTHER AMENDING THE CHARTER OF THE PHILIPPINE NATIONAL OIL COMPANY (PNOC), AS PROVIDED FOR IN PRESIDENTIAL DECREE NO. 334, AS AMENDED, AND FOR OTHER PURPOSES.

• Number: Presidential Decree No. 572
• Sections: 5

Preamble

WHEREAS, under Presidential Decree No. 334, as amended, the

Philippine National Oil Company is expressly charged (a) to provide

and maintain an adequate and stable supply of oil and petroleum products

for the domestic requirements; (b) to promote the exploration,

exploitation and development of local oil and petroleum sources; and (c)

to foster oil or petroleum operation conditions conducive to a balanced

and sustainable growth of the economy;

WHEREAS, it is imperative that the Philippine National 0il

Company and its affiliated companies be granted adequate powers and

incentives to enable it to attain expeditiously and efficiently its

declared objectives.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,

do hereby decree and order the following:

Section 1

SECTION 1. Section 13 of Presidential Decree No. 334 is

hereby amended to read as follows:

Section 2

SEC. 2. Section 15 of Presidential Decree No. 334, as

amended, is hereby further amended to read as follows:

"SEC. 15. Privileges and Incentives. — The Company

shall be entitled to all the incentives and privileges granted by law

to private enterprises engaged in petroleum or oil operations.

"In addition the company shall be exempt from all taxes, duties,

fees, imposts, and all other charges imposed directly or indirectly by

the Republic of the Philippines, its provinces, cities, municipalities

and other government agencies and instrumentalities: Provided,

That the Company's affiliate corporations as provided in Section 13

hereof, as amended, shall be exempt only from all taxes, duties, fees,

imposts, and all other charges imposed directly or indirectly by the

Republic of the Philippines, its provinces, cities, municipalities and

other government agencies and instrumentalities, on importations of

aircrafts, vessels, tankers, barges and other floating structures,

including any machinery, engines, motors, equipment, spare parts and

materials thereof.

"Other government offices and other government-owned or

controlled corporations shall extend whatever assistance maybe needed by

the Company or any of its affiliates and subsidiaries, including the

detail of its officials and employees to the Company or any of its

subsidiaries on full time or part time basis under arrangement

satisfactory to the Company or any of its subsidiaries and the other

office or corporation concerned. Said officials and employees, as well

as the direction of the Company and its affiliates and subsidiaries, may

receive allowances and other emoluments, notwithstanding the provision

of any law to the contrary."

"The employees of the Company shall be entitled to all the

retirement and insurance benefits and leave privileges of government

employees. However, subsidiaries of the Company organized to undertake

purely business ventures shall not, as a matter of right, be subject to

the provisions of the Government Service and Insurance System, as

provided for under R. A. 186, as amended, as well as to any law,

executive orders and decrees relating to leave of absences, retirement

privileges, regular working hours, and other government employee

benefits."

Section 3

SEC. 3. This Decree shall be effective as of the date of

the effectivity of Presidential Decree No. 334.

Done in the City of Manila, this 5th day of November, in the

year of Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary

Section 13

SEC. 13. Loans — The Company as well as any

affiliate corporation in which it holds, owns and/or controls by itself

or jointly with one or more Government owned or controlled corporations

at least seventy-five (75%) of the issued and outstanding shares of

stock entitled to vote, when specifically authorized by the President of

the Philippines, is hereby authorized to contract loans, credits, in

any convertible foreign currency or capital goods, and indebtedness from

time to time from foreign governments, or any international financial

institutions or fund sources, or any other entities, on such terms and

conditions it shall deem appropriate for the accomplishment of its

purposes and to enter into and execute agreements and other documents

specifying such terms and conditions.

"The Republic of the Philippines, through the President of the

Philippines or his duly authorized representative, may guarantee,

absolutely and unconditionally, as primary obligor and not as surety

merely, the payment of the loans, credits and indebtedness secured by

the Company or any of its affiliate corporations, as provided above,

which may be over and above the amount which the President of the

Philippines is authorized to guarantee under Republic Act Numbered Sixty

One Hundred Forty-Two, as amended, as well as the performance of all or

any of the obligations undertaken by the Company or its affiliate

corporations in the territory of the Republic of the Philippines

pursuant to loan agreements entered into with foreign governments or any

international financial institutions or fund sources.

"The loans, credits and indebtedness contracted under this

subsection and the payment of the principal, interest and other charges

thereon, as well as the importation of machinery, equipment, materials,

supplies and services, by the Company or any of its affiliate

corporations as defined herein, paid from the proceeds of any loan,

credit or indebtedness incurred under this Act, shall also be exempt

from all direct and indirect taxes, duties, fees, imposts, and all other

charges and restrictions, including import restrictions previously and

presently imposed, and to be imposed by the Republic of the Philippines,

or any of its agencies and political subdivisions."