NINETEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES } 
Third Regular Session 
}
SENATE 
S.B. no.2995
!'r.
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT CREATING THE TALAMPAS NG PILIPINAS OIL CORPORATION, 
DEFINING ITS POWERS AND FUNCTIONS, AND PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines' robust economic expansion has significantly fueled the increase 
in energy demand, particularly within the transportation and industrial sectors. With 
the population reaching 112 million in 2023, increased energy consumption is an 
urgent concern that needs to be addressed.
The Philippine petroleum industry is a crucial component of the nation's energy 
sector, predominantly characterized by its dependence on imported crude oil and 
petroleum products due to limited domestic production. The country's crude oil 
production in the petroleum industry market remains modest, averaging around 
23,000 barrels per day, primarily from the Galoc oil field in the offshore Palawan basin. 
Major sites for petroleum activities include the Bataan Refinery operated by Petron 
Corporation, which has a refining capacity of 180,000 barrels per day, and various 
import terminals and storage facilities across the archipelago. Annually, the Philippines 
imports approximately 170 million barrels of crude oil and petroleum products to 
satisfy its energy requirements. Major suppliers include Saudi Arabia, providing around 
80 million barrels, and Kuwait, contributing 40 million barrels, making the Philippines 
susceptible to geopolitical tensions in the Middle East. The balance of imports comes 
from neighboring countries like Malaysia and Indonesia, supplying collectively 30 
million barrels, and from Russia, with imports totaling 20 million barrels despite global 
market complexities.1
Projections estimate that petroleum demand could reach 200 million barrels 
annually by 2025. With the unavoidable certainty of this happening, efforts to explore 
untapped domestic reserves, particularly in the West Philippine Sea, where potential
1 httDs://www.astuteanalvtica.com/industrv-report/DhiliDPines-Detroleum-market


reserves are estimated at over 1 billion barrels of oil equivalent, are underway to 
reduce import dependence and strengthen energy security.
Fuel consumption has escalated significantly for the transportation sector 
manifested by the overwhelming number of vehicles and the influx of passengers in 
the aviation industry. Industrial growth, infrastructure development projects, and 
widespread use of liquefied petroleum gas (LPG) for household cooking—utilized by 
over 20 million households— also fuel the demand.
Recent developments have further solidified our claim over the West Philippine 
Sea, particularly the 2012 Arbitral Ruling, the newly enacted Philippine Maritime Zones 
Act and the Philippine Archipelagic Sea Lanes Act.
The submission of the "Talampas ng Pilipinas" chart to the International Seabed 
Authority (ISA) is another significant move that further strengthened our sovereign 
rights over our maritime zones.
Compared to the Malampaya Gas Field, Talampas ng Pilipinas is far larger and 
richer in resources composed of more or less 24 million-hectare undersea region which 
includes a 13.5 million-hectare outer section. This vast untapped and unexplored 
region will be the hope for the country's energy resource deficit.
Together with the Talampas ng Pilipinas Development Authority (TPDA) to 
spearhead the integrated planning, policy formulation, and multisectoral collaboration, 
the creation of the Talampas ng Pilipinas Oil Corporation will pave the way for the 
realization of future exploration, deveiopment, and utilization of potentiai oil reserves 
and energy resources in the region. Sustainable supply and utilization of the resources 
therein will lead to unimpeded and efficient growth of the economy to further improve 
the lives of Filipinos.
In view of the increasing energy demands in the country and the great potentiai 
this bill will bring to our country, its immediate passage is earnestly sought.
FRA
rOL" N. tolentincMc
Senator 
^ U


NINETEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES }
Third Regular Session 
}
on oi
'! :21
SENATE 
S.B. No. ^995
i-t ■ .
/
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT CREATING THE TALAMPAS NG PILIPINAS OIL CORPORATION, 
DEFINING ITS POWERS AND FUNCTIONS, AND PROVIDING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES
1 
Section 1. Short Title. This Act shall be known as the "Talampas ng Pilipinas
2 
Oil Corporation Act of 2025."
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Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to
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ensure the adequate and continuous supply of energy in the Philippines with the end
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in view of achieving self-reliance by maximizing all the potential energy sources within
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and under the jurisdiction of the Republic of the Philippines, including the vast
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resources found within the Talampas ng Pilipinas. In line with this Policy, the
8 
establishment of a specialized organization, that will focus on the exploration and
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utilization of potential oil reserves and energy resources in the Talampas ng Pilipinas
10 
region, is necessary in order to assure the sustainable supply and utilization of the
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resources therein and consequently contribute to unimpeded and efficient growth of
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the economy.
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Sec. 3. Establishment of tiie Talampas ng Pilipinas OH Corporation.
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There is hereby created a body corporate to be known as the Talampas ng Pilipinas
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Oil Corporation, hereinafter referred to as the "Corporation", that will focus on the
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exploration, development and utilization of all potential oil, petroleum, and gas
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operations at the Talampas ng Pilipinas.
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Sec. 4. Term and Domicile. The Corporation shall be organized within one
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hundred eighty (180) days from the approvai of this Act. It shall have a term of fifty
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(50) years from the effectivity of this Act, which shall be deemed renewed for an
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equal period unless sooner dissolved by law.
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The principal office of the Corporation shall be determined by its Board of
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Directors. It may establish such offices, agencies, subsidiaries, branches or
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correspondents in the Philippines or abroad as its business operations wouid require.


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Sec. 5. Purposes. The Corporation shall have the following purposes:
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(a) To promote the exploration, exploitation and development of local energy
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resources such as oil, petroleum, and gas in Talampas ng Pilipinas;
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(b) To undertake various surveys and activities involving energy resources
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operations particularly for oil, petroleum, and gas operations in Talampas ng
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Pilipinas;
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(d) To foster conditions relating to oil, petroleum, or gas operations and other
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energy resources exploitation conducive to a balanced and sustainable growth of the
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economy.
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Sec. 6. Powers and Functions of the Corporation.
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a) To directly undertake exploration, development, and exploitation of all
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energy resources within the Talampas ng Pilipinas, including surveys and activities
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related thereto;
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b) To undertake through co- production, joint venture or production-sharing
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agreements with Filipino citizens or qualified corporations the exploration,
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development and exploitation of all energy resources inside the Talampas ng Pilipinas;
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c) To establish, maintain, control and direct in any area within the Talampas
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ng Pilipinas, as it may deem appropriate, a petroleum and energy base territory and
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construct, install or maintain therein duty-free ports adequate for the use of vessels
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engaged in offshore oil drilling operations, airports sufficient for direct service flights,
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telecommunications center and ship-to-shore communications facilities, provide
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electric power and fresh water supply, and perform such other acts as it may deem
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necessary and advantageous or convenient to such operations;
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d) To lease, at reasonable rates, to private domestic entities or persons such
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portion or portions of the petroleum and energy base, including facilities necessary for
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warehousing, logistical centers for the storage of oil drilling and oil well supplies,
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fabrication of off-shore drilling components and structures, mechanical repair facilities
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and the like; spaces for the office, habitation and recreational requirements of
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personnel directly engaged in offshore oil drilling and in manning the various logistical
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support operations and their immediate dependents;
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e) To recommend to the President of the Philippines to enter into service
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contracts, after public bidding, with any person or entity, domestic or foreign, and
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with governments for the undertaking of the varied aspects of oil, petroleum, or gas
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operation, and energy resources exploitation including the acquisition, by way of
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purchase, lease or rent or other deferred payment arrangements of equipment and/or
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raw materials and supplies, as well as for services connected therewith under such
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terms and conditions as it may deem proper and reasonable;


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f) To borrow money from local and foreign sources as may be necessary for its
2 
operations, subject to the approval of the President of the Philippines upon favorable
3 
recommendation of the Secretary of Energy;
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g) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the
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shares of the capital stock of, or any bond, security in other corporations or
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associations locally or in any other country; and while the owner of said stock, to
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exercise all the rights of ownership, including the right to vote thereon;
8 
h) To hold lands and acquire rights over mineral lands in excess of the areas
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permitted to private corporations, associations and persons by statute;
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i) To engage in export and import business of oil, petroleum other forms and
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sources of energy and there derivatives, as well as in related activities;
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j) To acquire assets, real or personal, or interests therein, and encumber or
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otherwise dispose the same as it may deem proper and necessary in the conduct of
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its business;
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k) Subject to existing regulations, if it deems necessary, to establish and
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maintain such communication system, whether by radio, satellite, or any other modern
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means, without the need of a separate franchise therefor;
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I) To determine its organizational structure, and the number and salaries of its
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officers and employees;
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m) To establish and maintain offices, branches, agencies, subsidiaries,
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correspondents or other units anywhere as may be needed by the Corporation and
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reorganize or abolish the same as it may deem proper;
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n) To establish and maintain technical educational system for the sustained
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development of the necessary manpower to manage and operate its affairs and
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business;
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o) To adopt a code of by-laws to complement this charter;
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p) To adopt and use a corporate seal which shall be judicially noticed;
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q) To perform such acts and exercise such functions as may be necessary for
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the attainment of the purposes and objectives herein specified;
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r) To perform such other functions as may be provided by law.
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Sec. 7. Governing Body. The Corporation shall be governed by a Board of
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Directors, hereinafter referred to as the "Board" which shall be composed of seven
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(7) members including the Administrator of the Talampas ng Pilipinas Development
35 
Authority, to be appointed by the President of the Philippines.


1 
In case of any vacancy in the Board, the same shall be filled by the President
2 
of the Philippines for the unexpired term.
3 
The appointment, removal, and term of office of the members of the board
4 
shall be governed by sections 15, 16, and 17 of Republic Act No. 10149, otherwise
5 
known as the GOCC Governance Act of 2011: Provided, they shall likewise possess the
6 
following qualifications:
7 
a) a natural born citizen of the Philippines;
8
b) at least thirty-five (35) years of age;
g
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c) at least ten (10) years of cumulative experience in any of the following fields: 
petroleum operations, energy, law, economics, finance, or engineering; and
d) of recognized good moral character, integrity, probity, independence, and 
competence.
The duties and responsibilities of the members of the Board shall be governed by 
sections 19, 20, 21, and 22, of Republic Act No. 10149: Provided, that in addition to 
the foregoing provisions, the members of the board shall:
a) Upon appointment, divest through sale or legal disposition any and all interests 
from any petroleum operations or downstream oil industry business;
b) Upon appointment, relinquish any existing employment, consultancy, or any 
connection with, and any pecuniary interest in any petroleum operations or 
downstream oil industry business;
c) Publicly disclose annually any relative by consanguinity or affinity within the 
fourth civil degree who has a previous or existing employment, consultancy, 
connection with, or pecuniary interest in any energy company;
d) Act in the best interest of the Corporation with the country's energy security 
and energy self-sufficiency as the utmost objective; exercise objective and 
independent judgment, and extraordinary diligence and skill in the performance 
of their duties;
e) Establish concrete policies and specific procedures to ensure the highest 
standards of ethics, professionalism, transparency, and accountability of the 
members of the board, and the officers and employees of the Corporation,
f) Recommend a shortlist of qualified candidates for the Corporation's president 
to the President of the Philippines: Provided, that the candidates shall possess 
the following qualifications:
1) at least forty (40) years of age;


1 
2) at least ten (10) years of cumulative experience in any of the following
2 
fields: petroleum operations, energy, law, economics, finance, or
3 
engineering;
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3) proven track record and experience in managing companies in the
5 
private or public sector; and
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4) of recognized good moral character, integrity, probity, independence,
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and competence.
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The compensation and allowances, and liabilities of the members of the Board
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shall be governed by sections 23 and 24 of Republic Act No. 10149.
10 
Sec. 8. Capital Stock. The Corporation shall have a authorized capital stock of
11 
two billion pesos divided into Twenty million shares with par value of one hundred
12 
pesos per share to be subscribed and paid for as follows:
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a) Four million shares of stock shall be originally subscribed and paid for by the
14 
Republic of the Philippines at an original issue value of PlOO per share.
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b) The remaining Sixteen million shares of stock may be subscribed and paid
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for by the Republic of the Philippines or by a government financial institution at values
17 
to be determined by the Board, but in no case less than the original issued value above
18 
stated to the Republic of the Philippines.
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The voting power pertaining to shares of stock subscribed by the government
20 
of the Republic of the Philippines shall be vested in the President of the Philippines or
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in such person or persons as he may designate.
22 
The voting power pertaining to shares of stock subscribed by the government
23 
financial institutions shall be vested in them.
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Sec. 9. Duties and Responsibilities of the Chairperson of the Board and
25 
President
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The Chairperson of the Board shall have the following duties and
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responsibilities:
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a) Set, in coordination with the Board, the general policy direction for the
29 
Corporation;
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b) Convene the board for regular and special meetings;
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c) Prepare the agenda for the regular and special meetings of the board;
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d) Recommend to the President the reorganization of the Board as may be
33 
deemed necessary; and


1 
e) Exercise such powers and perform such duties as may be provided in the by-
2 
laws or as may be vested in them by the board.
3 
In addition to the provisions under Sections 18 and 22 of Republic Act No.
4 
10149, the Corporation's President shall:
5 
a) Upon appointment, divest through sale or legal disposition any and all interests
6 
from any petroleum operations or downstream oil industry business;
7 
b) Upon appointment, relinquish any existing employment, consultancy, or any
8 
connection with, and any pecuniary interest in any petroleum operations or
9 
downstream oil industry business;
10 
c) Publicly disclose annually any relative by consanguinity or affinity within the
11 
fourth civil degree who has a previous or existing employment, consultancy,
12 
connection with, or pecuniary interest in any energy company;
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d) Serve as the Chief Executive Officer of the Talampas ng Pilipinas Oil
14 
Corporation;
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e) Execute, administer, and implement the general policy direction and specific
16 
measures approved by the Board;
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f) Direct and supervise the operations and administration of the Corporation;
18
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g) Submit for consideration by the Board such policies and measures necessary to
20 
carry out the purposes and objectives of this act;
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h) Represent the Corporation in all dealings with third parties: Provided, that the
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requisite authority has been issued by the Board; and
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i) Exercise such other powers and duties provided in the by-laws and vested upon
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by the Board.
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Sec. 10. Legal counsel. The Solicitor General shall be the ex-officio legal
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counsel of the corporation.
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Sec. 11. Appointment, Control, and Discipline of Personnel. The "Board", upon
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recommendation of the President of the Corporation, shall appoint the officers and
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employees of the Corporation; fix their compensation, allowances and benefits, their
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working hours and such other conditions of employment as it may deem proper;
31 
grant them leaves of absence under such regulations as it may promulgate, discipline
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and / or remove them for cause; and establish and maintain a recruitment and merit
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system for the Corporation and its affiliates and subsidiaries.
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Sec. 12. Privileges and Incentives. The Corporation shall be entitled to all tax
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incentives and privileges granted by law to private enterprises engaged in oil,
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petroleum, and gas operations.


1 
Sec. 13. Appropriations. The amount necessary for the initial implementation
2 
of this Act shall be charged against the current year's appropriations of the
3 
Department of Energy. Thereafter, such amount shall be included in the annual
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General Appropriations Act.
5 
Sec. 14. Reports. The Corporation shaii, within three months after the end of
6 
every fiscal year, submit its annual report to the President and Congress. It shall
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likewise submit such periodic or other reports as may be required of it from time to
8 
time.
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Sec. 15. Impiementing Rules and Regulations. The Department of Energy
10 
together with relevant agencies shaii forthwith promuigate such rules and regulations
11 
for the effective implementation of this Act within ninety (90) days after its
12 
effectivity. Provided, That the failure of the promulgation of the said rules and
13 
regulations shall not prevent the implementation of this Act upon its effectivity.
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Sec. 16. Separability Clause. If any part or provision of this Act is held invalid
15 
or unconstitutional, the other provisions not affected thereby shaii remain in fuii force
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and effect.
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Sec. 17. Repealing Clause. All provisions of law which are in conflict with this
18 
Act are hereby repeaied or modified accordingly.
19 
Sec. 18. Effectivity. This Act shall take effect fifteen (15) days after its
20 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,