AMENDING THE CHARTER OF THE PHILIPPINE NATIONAL OIL COMPANY, AS PROVIDED FOR IN PRESIDENTIAL DECREE NO. 334, DATED NOVEMBER 9, 1973, AND FOR OTHER PURPOSES

WHEREAS, for the purpose of strengthening the policy-making
body of the Philippine National Oil Company, it is necessary to increase
the number of its directors; and

WHEREAS, it is imperative that the Government give all the
assistance and incentives to the Company in its venture to insure
adequate supply of oil for the sustained growth of the economy;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081, dated September 21, 1972 and General
Order No. 1, dated September 22, 1972, as amended, do hereby order and
decree that certain provisions of Presidential Decree No. 334, dated
November 9 1973, be amended:

SECTION 1. Section 6 of Presidential Decree No. 334 is
hereby amended to read as follows:

“SEC. 6. Governing Body. — The Company shall be
governed by a Board of Directors, hereinafter referred to as the ‘Board’
which shall be composed of nine (9) members, to be appointed by the
President of the Philippines. The members of the Board shall serve for a
term of three (3) years or until their successors shall have been
appointed and qualified. In case of any vacancy in the Board, the same
shall be filled by the President of the Philippines for the unexpired
term.

“No person shall be appointed as member of the Board unless he
is a natural-born citi2en of the Philippines, at least thirty-five (35)
years of age and of established integrity.”

SEC. 2. Section 15 of said Decree is hereby amended to
read as follows:

“SEC. 15. Privileges and Incentives. — The Company
shall be entitled to all the incentives and privileges granted by law
to private enterprises engaged in petroleum or oil operations.

“In addition, the employees of the Company shall be entitled to
all the retirement and insurance benefits and leave privileges of
government employees. However, subsidiaries of the Company organized to
undertake purely business ventures shall not, as a matter of right, be
subject to the provisions of the Government Service and Insurance
System, as provided for under R.A. No. 186, as amended, as well as to
any law, executive orders and decrees relating to leave of absences,
retirement privileges, regular working hours, and other government
employee benefits.”

SEC. 3. Effectivity. This Decree shall take effect
immediately.

Done in the City of Manila, this 4th day of March, in the year
of Our Lord, nineteen hundred and seventy-four.