THE DEPARTMENT of Energy (DoE) said proposals to review the charter of the Philippine National Oil Company (PNOC) should expand the PNOC’s role in the country’s petroleum projects.
At a hearing conducted by the House Committee on Energy on Tuesday, DoE-Oil Industry Management Bureau Director Rino E. Abad said the department hopes to see in the proposal “a provision which will enhance the mandate of the PNOC to go into downstream natural gas projects.”
He said that also on the wish list are the establishment of the Philippine Strategic Oil Reserve. Mr. Abad said the DoE is currently drafting a circular in consultation with the PNOC on setting up a reserve, adding that he hopes the terms of the circular will make their way into the law.
Legislators on Tuesday began deliberations on House Bill 8762 which will revise the charter of the PNOC. The bill was written by the House energy committee chairman, Pampanga Rep. Juan Miguel Macapagal Arroyo.
The PNOC was created by Presidential Decree 334 in 1973.
PNOC President Reuben S. Lista said at the hearing that the bill, which will amend the decree, will allow more flexibility for PNOC in dealing with the potential for disruption posed by dwindling global oil reserves.
“Sadly the Philippine National Oil Company, shackled by stringent rules, remains dormant in its present state without an outlook of spirited expansion,” he said.
“The passage of this bill will allow the Philippine National Oil Company to meet the new and emerging energy challenges not merely as a passive government-owned and -controlled corporation but as a business entity making profits for the government and at the same time, an active, vigorous, and strong organization fully committed to nation-building,” he added.
The proposed amendments include exemption from submitting the PNOC budget for Congressional approval. The PNOC will also be exempt from government procurement law for certain items.
PNOC Vice-President Ronald C. Chua said since the PNOC became an operating company in 2018, the amendments will provide leeway for the organization to procure supplies for its operations.
“We are the only government-owned and -controlled corporation that has to submit our budget even if we do not have budget allocation from the government. Our budget is confined and limited to our own funds,” he said at the hearing. — Gillian M. Cortez
