NOTE: Some content may not display correctly, including tables and figures. See PDF for full details.

OEA CIRCULAR NO. 87-12-003

TO: ALL SERVICE CONTRACTORS 

RESTORATION OF THE FILIPINO PARTICIPATION INCENTIVE ALLOWANCE           

For the guidance of all concerned, the grant of the Filipino Participation Incentive Allowance (FPIA) under PD No. 87, implementation of which was suspended in 1977, has been authorized by the President for a limited period from September 1, 1986 to December 31, 1988.

As provided in Section 28 of PD No. 87, the contractor under the service contract in which Philippine citizens or corporations have a minimum participating interest of fifteen percent (15%) in the contract area may, subject to the reasonable conditions imposed by the Petroleum Board (now the Office of Energy Affairs), be granted a Government subsidy commensurate with the scope of Filipino participation not exceeding seven and one-half percent (7•%), which shall be computed by deducting the said allowance from the posted or market price, whichever is higher, of crude oil exports produced in the contract area, and from the market price of crude oil produced in the contract area, sold or disposed of for consumption in the Philippines.

Consistent with the said authority and in accordance with the said provision, the following schedule of percentage incentive shall be granted under service contracts with requisite qualifying Filipino participation.

Filipino Participation Incentive Allowance

30%-above7•%

27.5%-but less than 30%6•%

25.0%-but less than 27.5%5•%

22.5%-but less than 25.0%4•%

20.0%-but less than 22.5%3•%

17.5%-but less than 20.0%2•%

15.0%-but less than 17.5%1•%

Below 15.0%0%

This Circular takes effect immediately.

W. R. DELA PAZ

Officer-in-Charge

1 December 1987