Signed in November 9, 1973, Presidential Decree No.334 created the Philippine National Oil Company (“PNOC”) due to a compelling need for government to embark on measures that will help ensure a stable supply of petroleum products in order to sustain the growth of the economy and the social well-being of the nation.
Amendments have been made to the charter to include exploration, exploitation and development of all energy resources in the country. These amendments include the following:
- P.D. No. 405 which took effect on 04 March 1974 (Amending P.D. No. 334 to increase the number of directors of PNOC from 7 members to 9 members)
- P.D. No. 572 enacted on 05 November 1974, but its effectivity was made retroactive to 09 November 1973 (Further amending P.D. No. 334 granting PNOC and its affiliated companies adequate powers and incentives to attain expeditiously and efficiently its declared objectives)
- P.D. No. 927 enacted and took effect on 30 April 1976 (Further amending P.D. No. 334 broadening the powers of PNOC to include the exploration, exploitation and development of local oil, petroleum and other energy resources)
- P.D. No. 1516 enacted and took effect on 11 June 1978 (Further amending P.D. No. 334 increasing the capital stock of PNOC from three million shares to ten million shares)
- E.O. No. 171 enacted on May 8, 1978 (Amending certain provisions of P.D. No. 334 to reorganize PNOC to make it responsive to the requirements of the industry and to make PNOC salaries competitive with the private sector)
- R.A. 7638 enacted on 09 December 1992 (An act creating the Department of Energy rationalizing the organization and functions of government agencies related to energy and for other purposes)
PNOC Exploration Corporation (PNOC EC) is the upstream oil, gas and coal subsidiary of the state-owned Philippine National Oil Company (PNOC). Initially starting out as the Exploration Department of PNOC in April 1975, PNOC EC was eventually incorporated as a PNOC subsidiary and registered with the Philippine Securities and Exchange Commission on April 20, 1976. PNOC EC’s shares of stock are 99.79% owned by the Philippine government through PNOC, with the remaining 0.21% held by public shareholders.
PNOC EC was created under the Corporation Code (Batas Pambansa Blg. 68) with the following primary purpose:
To prospect, explore, dig, and drill for, exploit, extract, produce, purchase or otherwise acquire, store, hold, transport, use, experiment with, market, distribute, exchange, sell and otherwise dispose of, import, export, and handle, trade and generally deal in, refine, treat, reduce, distill, manufacture and smelt, any and all kinds of petroleum and petroleum products, oil, gas and other volatile substances, ozakerite, sulphur, clays, bituminous substance, carbon, carbon black, hydrocarbon substances, phosphates, nitrates, coal, ores, minerals and mineral substances of all grades, kinds, forms, descriptions and combinations, and in general subsoil products and subsurface deposits of every nature and description and the products and by-products which may be derived, produced, prepared, developed, compounded, made or manufactured therefrom and substances obtained by mixing any of the foregoing with other substances.