The Department of Energy (DOE) warns the public against companies wrongfully claiming to be legitimate players of the downstream oil industry.

Endorsements to the Securities and Exchange Commission (SEC) issued by the DOE, through its Oil Industry Management Bureau (OIMB) merely serves to inform the SEC that the Department interposes no objection to the registration of companies wishing to engage in the downstream oil business. 

However, please note that under the provisions of Republic Act 8479, otherwise known as the Downstream Oil Industry Deregulation Act of 1998, these SEC-endorsed companies must subsequently notify and submit documentary requirements to the DOE-OIMB before being considered legitimate downstream oil players. Non-compliance thereof will render all types of activities and representations of these companies illegal. 

Further, it is an acceptable industry practice for legitimate downstream oil players to source their funds from loans duly approved by banks and other recognized lending institutions, or from equity contributions duly notified to and approved by the SEC and/or the Department of Trade and Industry.

Therefore, other funding practices aside from the foregoing, especially those that are inviting investments through the promise of unbelievable profit returns should be fully investigated to prevent fraudulent practices, such as those used in “ponzi-like” schemes.

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