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ENERGY Secretary Alfonso Cusi said on Wednesday exploration companies are free to decide whether or not to resume their oil exploration activities at Recto Bank due to concerns that China could ban exploration activities in the area.
“That is the decision they have to make, whether they want to work or not,” Cusi said when asked to comment that exploration companies, such as PXP Energy Corp., cannot resume exploration activities since the survey. The moratorium was a unilateral move.
“The lifting of the moratorium was a unilateral decision, based on the needs of the country. That is the territory of the country. We gave instructions to resume work. They presented a work plan. We are holding them accountable. If they fail, we will take the necessary measures, ”Cusi said.
The lifting of the moratorium effectively allows the Philippine National Petroleum Company-Exploration Corporation, Forum Energy and PXP Energy Corp. to resume exploration activities under, respectively: Service Contract 59 at West Balabac, Palawan; Service Contract 72, which covers Recto Bank, also known as Reed Bank; and Service Contract 75 in Northwest Palawan.
The DOE’s notice to resume work included a reminder for contractors to stay within the 500-meter safety zone in their area and to follow all navigation rules to ensure safety.
If China, which claims ownership of the area, protested, Cusi had said that the Philippine government “will defend our rights.”
Prior to the lifting of the moratorium, PXP had signed a memorandum of understanding with China National Offshore Oil Corporation (CNOOC) to jointly develop SC 72. Cusi commented that PXP is free to continue discussions with CNOOC or explore other partners.
“We are not prohibiting that. That is part of your MOU to explore cooperation. They want to negotiate with CNOOC. I know they have been negotiating and that is not a precondition for resuming work. What can they do [Whatever it is they are capable of],” he said.
Exploration works at Recto Bank were suspended following a 2012 presidential order issued by the Aquino administration amid mounting tensions with China.
