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Metro Manila (CNN Philippines, October 19) – Philippine companies looking for oil deposits in the Western Philippine Sea are expected to show results in the next five to six years, the Department of Energy said on Monday.
Energy Secretary Alfonso Cusi said time is running out for service contractors after President Rodrigo Duterte lifted the years-long ban on oil exploration activities in the disputed waters, which have been declared part of the zone. exclusive economy of the Philippines.
“Regarding the schedule, we have notified the five service contract holders to resume their exploration activities. Based on that notice, there is his work on investment commitments, [their work and investment commitments are there]”said the DOE chief during a briefing in Malacañang.
“There in work schedule, I think they have five to six years lined up. They must resume that immediately because time will be against them when they didn’t work immediately [if they don’t start working right away]. “
He said companies are required to invest up to $ 80 million (about $ 3.9 billion) in capital to seek oil, which should also help economic recovery and create jobs.
Cusi said there are five companies, including partners from Malaysia, that have service contracts in these disputed waters. He added that three other applicants are under evaluation for oil exploration and possible drilling activities.
‘Mutual respect’ with China
The DOE expressed optimism that oil exploration can progress smoothly despite the Philippine government’s sole decision to open the area amid ongoing negotiations with China for a joint effort.
“If China is in crisis due to our unilateral lifting of our moratorium, first of all, it is not prohibited, there is no regulation that prohibits (sa) unilateral uprising, “Cusi said.
RELATED: China expects ‘new progress’ in oil exploration deal with PH
“Second, our relationship with the Philippines and China has improved since President Duterte took office. Has reached a new maturity – great, it is based on mutual respect, ”he added.
[Translation: Will China will make trouble because of our unilateral lifting of our moratorium? In the first place, there is no regulation against a unilateral lifting. Secondly, our the Philippines’ relations with China have improved since President Duterte came into power. It has reached a new maturity – it is good, it is based on mutual respect]Any problem or protest that may arise can be resolved “diplomatically,” added Cusi, noting that there are redress mechanisms. He added that talks are ongoing for the joint exploration agreement, which was halted due to the COVID-19 pandemic.
RELATED: PH, China Members of the Joint Oil Exploration Committee Revealed
China has made several forays into the Philippines’ 200-nautical-mile exclusive economic zone in recent years, resulting in diplomatic protests against Beijing. China continues to reject the Manila arbitration victory, and Duterte and Chinese President Xi Jinping chose to put the issues aside and “agree to disagree” for the time being.
Entrepreneur Manny Pangilinan’s PXP Energy has a service contract with Recto Bank, but exploration was suspended by a 2012 order that froze all such activities in disputed areas.
READ: The government rejects PXP’s offer to take over Malampaya
More investments are seen
Duterte’s latest move paves the way for the resumption of drilling activities in the disputed waters, including planned joint exploration with China.
The area is said to be rich in oil deposits and is the subject of a July 2016 arbitral tribunal ruling that dismissed Beijing’s extensive claims in the South China Sea.
Cusi hopes that the relaxed rules on oil exploration will lead to more investment and ensure long-term energy security, with the country looking for an alternative source of energy as the Malampaya natural gas facility is expected to be depleted in the next years.
Malampaya covers up to 30% of the country’s electricity needs.
Separately, Cusi said that businessman Dennis Uy Udenna Corporation, as well as the state-owned Philippine National Oil Company-Exploration Corporation have the right to match Shell Exploration BV’s plan to offer its 45% stake in the gas conversion project. to energy as seen. divest and leave the consortium. This means that existing partners can be prioritized to buy Shell shares over a third party.
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