DoE warns public on fake oil firms

The DoE warned of non-legit oil firms inviting investments through the promise of unbelievable profit returns.

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

The agency said its endorsements of companies to the Securities and Exchange Commission (SEC) through the Oil Industry Management Bureau (OIMB) merely serves to inform the SEC that it does not object 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,” according to the DoE.

The DoE added that 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.

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, it said.