DOE chief expects China to challenge lifting of West PH Sea oil exploration moratorium



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Metro Manila (CNN Philippines, October 16) – Insisting that the lifting of the suspension of oil exploration activities in the Western Philippine Sea was a unilateral measure, Energy Secretary Alfonso Cusi now hopes that China will present a formal investigation in this regard.

“I’m sure they won’t accept it without saying anything. I’m sure they will write to us and we will address it as it comes, na bakit natin nilift (that’s why we raised it), and we will be answering that, ”Cusi said at an online press conference on Friday.

Cusi is co-vice chair of the intergovernmental steering committee that will oversee projects under the planned joint oil and gas exploration with China. However, he said he did not inform his Chinese counterparts about the resumption of activities under Service Contracts 59, 72 and 75, which cover areas within the exclusive economic zone of the Philippines that Beijing disputes.

Service contract 59 is in West Balabac, Palawan; Service contract 72 covers Recto Bank, also known as Reed Bank; while service contract 75 is in northwest Palawan.

A “resume work” notice has already been issued to local companies – Philippine National Oil Company – Exploration Corporation, its subsidiary Forum Energy and PXP Energy Corp. – that have the contract in these areas. Along with the notice, it is a reminder for contractors to stay within the 500-meter safety zone and follow all navigation rules to ensure their safety, Cusi said.

The Philippine Navy and Coast Guard will also monitor the sites once drilling resumes, it said.

“I am sure China naman will respect our decision and their pronouncement nga nila, na West Philippine Sea, which they call the South China Sea, is an oasis of peace,” added Cusi.

[Translation: I’m sure China will respect our decision and in their pronouncements, the West Philippine Sea, which they call South China Sea, is an oasis of peace]

When asked what would happen if China protested, Cusi said the government will “defend our rights” and take the necessary measures based on the situation.

Beijing insists on owning almost the entire South China Sea, including parts of the Philippine EEZ, where Manila has exclusive sovereign rights. An international court in The Hague ruled in 2016 that China violated the rights of the Philippines when it interfered in oil exploration, blocked the fishing of Filipino fishermen and built artificial islands in the Western Philippine Sea.

China rejects the landmark ruling and President Rodrigo Duterte agreed to set it aside for economic activity, citing Beijing’s agreement to give the Philippines most of 60% of the revenue from planned joint exploration.

Cusi said Duterte’s latest move to lift the moratorium issued by his predecessor, former President Benigno Aquino III, which froze all exploration activities in disputed areas, will not affect the Philippines-China memorandum of understanding on joint development. oil and gas.

“That will continue to support joint development because it will pave the way for interested companies to join licensees to participate in exploration activities,” Cusi said.

The memorandum of understanding states that the two countries agreed to accelerate arrangements for joint exploration in maritime areas in accordance with international law. All negotiations carried out within the framework of the agreement “will be done without prejudice to the respective legal positions of both governments.”

On the other hand, the MOU does not prohibit the Philippines from resuming pending projects, Cusi said. Among these is the PXP Energy venture led by Manny Pangilinan at Recto Bank, also known as Reed Bank, an oil-rich offshore feature near the Malampaya deposit off Palawan.

It has been seen as a possible replacement for Malampaya, whose natural gas deposits are expected to be depleted from 2027. Malampaya accounts for 20 percent of the country’s electricity supply.

Exploration works at Recto Bank were suspended following Aquino’s 2012 presidential order amid mounting tensions with China. Although the Philippines previously offered Recto Bank for joint exploration, Cusi said Manila and Beijing have not agreed on a specific area or date for the project.

Beijing had appointed the state-owned China National Offshore Petroleum Corporation as its representative in all working groups. The Philippines, for its part, will assign the company that has a current service contract with the government in the joint exploration areas, which have yet to be determined. If no such companies exist, the Philippine National Petroleum Company – Exploration Corporation will represent the country.



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