Further Amending The Charter Of The Philippine National Oil Company As Provided For In Presidential Decree No. 334, As Amended

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 1516

FURTHER AMENDING THE CHARTER OF THE PHILIPPINE NATIONAL OIL COMPANY AS PROVIDED FOR IN PRESIDENTIAL DECREE NO. 334, AS AMENDED

WHEREAS, under Presidential Decree No. 334, as amended, the Philippine National Oil Company is expressly tasked with:

(a) maintaining an adequate and stable supply of oil and petroleum products;

(b) promoting the exploration, exploitation and development of local oil, petroleum and other energy resources, and

(c) fostering conditions relating to oil or petroleum operations and other energy resources exploitation, conducive to a balanced and sustainable growth of the economy.

WHEREAS, to enable the Philippine National Oil Company to attain these objectives efficiently and expeditiously, it is necessary that it be granted sufficient powers and incentives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree as follows:

Section 1. Section 7 is hereby amended to read as follows:

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Summary of Presidential Decree No. 1516

Amendments to the Philippine National Oil Company Charter

- Capital Stock (Section 1)
    - The company shall have a capital stock divided into 10 million no-par shares.
    - 2 million shares shall be originally subscribed and paid for by the Republic of the Philippines at P50 per share. (Section 7a)
    - The remaining 8 million shares may be subscribed and paid for by the Republic of the Philippines or by government financial institutions at values determined by the Board, but not less than P50 per share. (Section 7b)
    - Voting power for shares subscribed by the Republic of the Philippines shall be vested in the President or designated person(s). (Section 7)
    - Voting power for shares subscribed by government institutions shall be vested in them. (Section 7)

- General Counsel (Section 2)
    - The Secretary of Justice or the Solicitor General shall perform the duties of General Counsel of the Company. (Section 10)
    - The Secretary of Justice or the Solicitor General and necessary personnel shall receive allowances fixed by the Board, notwithstanding any contrary law. (Section 10)

- Effectivity (Section 3)
    - This Decree shall take effect immediately upon approval.