AMENDING PRESIDENTIAL DECREE NO. 87, OTHERWISE KNOWN AS “THE OIL EXPLORATION AND DEVELOPMENT ACT OF 1972.”

WHEREAS, it is the declared policy of the State to hasten
the discovery and production of indigenous petroleum through the
utilization of Government and/or private resources;

WHEREAS, the two principal agencies of the Government
responsible for carrying out the foregoing national policy-are the
Petroleum Board created under Presidential Decree No. 87 and the
Philippine National Oil Company created under Presidential Decree No.
334;

WHEREAS, in carrying out their functions, the Petroleum
Board, among others, executes and approves all service contracts in
connection with exploration and petroleum operations entered into by the
Government with all private persons while the Philippine National Oil
Company is the Government entity empowered to undertake and engage in,
by itself or in consortium with others, exploration activity and other
petroleum operations;

WHEREAS, to enable both agencies to fully coordinate their
activities and plans at the policy level it is essential to provide said
agencies a common forum;

WHEREAS, this can be attained by reconstituting the
membership of the Petroleum Board and giving the Philippine National Oil
Company representation therein;

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 as part of the law of the land:

SECTION 1. Section 17 of Presidential Decree No. 87 is
hereby amended to read as follows:

“SECTION 17. There is hereby created a Petroleum Board
composed of the President of the Philippine Oil Company, as Chairman,
and the Secretary of National Defense, the Executive Secretary, the
Secretary of Natural Resources, the Secretary of Finance, the Secretary
of Justice, the Secretary of Industry, the Governor of the Central Bank
and the Director of Mines as members. The Board shall designate and
appoint its Executive Director.”

SEC. 2. This Decree shall take effect upon its approval.

Done in the City of Manila, this 23rd day of May, in the year of
Our Lord, nineteen hundred and seventy-four.