PRESIDENT Rodrigo Duterte has signed an order making it easier for the government to enter into an agreement with other entities for the exploration, development, and production of oil especially on the western side of the Philippines.
Duterte issued Executive Order 80 on May 28, a copy of which was released by Malacañang on Thursday.
Under the order, third parties are now allowed to participate in the service contracts awarded by the government to the Philippine National Oil Company Exploration Corporation (PNOC-EC), the upstream oil, and gas subsidiary of the PNOC.
PNOC-EC can also participate in the service contracts awarded by the government to third parties.
“In all cases, PNOC-EC shall enter into farm-in/farm-out agreements only with reputable, technically competent and financially capable entities,” the EO stated.
The EO mandates the Department of Energy (DoE), in consultation with the Governance Commission for Government-Owned and -Controlled Corporations (GCG), to issue rules and regulations for the third party selection process to be undertaken by the PNOC-EC.
“The DoE shall take into consideration provisions of existing government selection procedures that enhance transparency and objectivity in the selection process, including GCG issuances requiring that contracts to be entered into by the government-owned and/or-controlled corporations undergo review by the Office of the Government Corporate Counsel,” the EO stated.