Duterte orders energy chief to sit as chair of 2 PNOC subsidiaries

September 7, 2017 - 12:27 AM
Energy Secretary Alfonso Cusi: he now wears additional hats as chair of two PNOC subsidiaries, per EO 39. FILE PHOTO FROM BUSINESSWORLDONLINE

MANILA – Invoking the continuing effort to streamline government offices and processes to better serve the public, President Rodrigo Duterte has ordered the Energy Secretary to sit as chair of two subsidiaries of the state corporation Philippine National Oil Company (PNOC).

Malacanan released Wednesday (Sept.6) Executive Order (EO) No. 39, which Duterte signed on September 5, mandating the Department of Energy (DOE) Secretary as ex officio chair of the PNOC Exploration Corporation (PNOC-EC) and PNOC Renewables Corporation (PNOC-RC).

“The Department of Energy, PNOC (Philippine National Oil Company), PNOC-EC, and PNOC-RC shall, in the most expeditious manner allowed by existing laws and rules, undertake all such actions as may be necessary to implement the provision of this Order, which may include the amendment of the company By-Laws”, EO 39 stated.

Republic Act (RA) No. 7638, also known as “The Department of Energy Act of 1992”, placed the PNOC under the supervision of the DOE “with the Secretary acting, in a concurrent capacity, as its ex officio Chairman of the Board, unless otherwise directed by the President.”

Both PNOC-EC and PNOC-RC are subsidiaries of government-owned and -controlled corporation (GOCC) Philippine National Oil Company (PNOC).

The PNOC owns 99.79 percent of PNOC-EC, while it owns 100 percent of PNOC-RC.

“In view of the respective mandates of the PNOC-EC and the PNOC-RC to, among others, explore, produce, and utilize petroleum and renewable energy sources as stated in their Articles of Incorporation, there is a need for close policy coordination between those corporations and the DOE in order to achieve the national policy of energy self-reliance,” the EO underscored.

RA 7638 mandates the DOE to implement the policy of the State to achieve self-reliance in the country’s energy requirements and to manage all programs and activities of the government relative to energy exploration, development, utilization, distribution, and conservation.