DOJ OPINION NO. 084 , s.

1976
2nd Indorsement
May 13, 1976

Respectfully returned to the Executive Director, Energy Development Board, Makati, Rizal,
the within request of the Philippine Oil Development co., Inc. (PODCO) for authority to
retain its President and Chairman of the Board, Mr. JOSE M. SORIANO, JR., its Vice-
President and Director, Mr. ANDRES SORIANO, JR. and its Vice-President, Mr. ANTHONY
MACAULAY MACLEOD, all of whom are American citizens, which was referred to this
Department in connection with the implementation of Section 2-A of the Anti-Dummy Law
(Commonwealth Act No. 108, as amended by Presidential Decree No. 715).
It is stated that PODCO is the holder of contractor's rights under a service contract
executed with the Petroleum Board pursuant to the provisions of Presidential Decree No.
87, as amended. It appears also that all its other petroleum concessions and concession
applications have either been relinquished or are in the process of being converted into a
service contract, as shown by the letter of its Executive Vice-President to the Energy
Development Board dated March 30, 1976. In fact, by express provision of Presidential
Decree No. 782, all existing Petroleum Concessions (PECS) and Petroleum Concession
Applications (PECAS) held under the Petroleum Act of 1949 (R.A. No. 387, as amended),
will automatically be cancelled, if not converted into service contracts by August 25, 1976
(Sec. 2).
The power vested in the Secretary of Justice, under Section 2-A of the Anti-Dummy Law, as
amended, is to grant specific authority for the employment of alien technical personnel in
nationalized businesses or activities. Within the intendment of said provision, nationalized
businesses or activities are those expressly reserved by the Constitution or existing laws
to Filipino citizens or corporations and associations at least 60% of the capital of which is
owned by Filipinos. As regards oil or petroleum exploration work by service contractors
under the provisions of Presidential Decree No. 87, there is no nationality requirement, as
the said decree was primarily intended to grant incentives to foreign petroleum service
contractors. Accordingly, Section 2-A of the Anti-Dummy Law is not applicable to the
service contractors under Presidential Decree No. 87. LexLib

Parenthetically, it is observed that the powers and functions of the Department of Natural
Resources and the Director of Mines under the Petroleum Act of 1949, have been
transferred to the Energy Development Board by virtue of Presidential Decree No. 782.
Thus, the employment of aliens for technical, executive or other work selected by
petroleum concessionaires as provided in the Petroleum Act (Sec. 26) is subject to
approval of that Board. Hence, the employment of foreigners by petroleum
concessionaires would not require approval by the Secretary of Justice under the Anti-
Dummy Law (see Opinion, Secretary of Justice, dated May 26, 1976).
It follows, therefore, that the retention of Messrs. Jose M. Soriano, Andres Soriano, Jr. and
Anthony M. Macleod as President and Chairman of the Board, Vice-President and Director,
and Vice-President, respectively, of PODCO, does not require the specific approval of the
Secretary of Justice.

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 (SGD.) VICENTE ABAD SANTOS
Secretary of Justice

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