Our attention has been called to the effect that some petroleum service contractors are employing the services of foreign transport companies/operators to support their petroleum operations despite the availability of domestic transport services.

In line with our mandate to oversee petroleum operations and in order to encourage and enhance the development of domestic transport services capability, all petroleum service contractors are hereby reminded of the guidelines under BED Circular No. 83-01-01, enjoining service contractors to give preference in awarding contracts, whether negotiated or bidded out, in favor of Philippine-registered tankers, vessels, bulk carriers and other watercrafts, including supply boats, crew boats, tugs and barges to service their transport, support and other related operational requirements under their respective service contracts.

Similarly service contractors are hereby enjoined to give preference in awarding contracts to Philippine-registered aircrafts (helicopters or fixed wings) provided the same generally meet the requirements of the contractors.

For strict compliance.

Adopted: 26 Nov. 1992

(Sgd.) RUFINO B. BOMASANG
Acting Executive Director