The Department of Energy (DOE) said it will continue to pursue talks with existing service contract (SC) holders in the West Philippine Sea (WPS) following the termination of the planned joint oil and gas negotiations with China.
Outgoing Foreign Affairs Secretary Teodoro Locsin Jr. announced the termination last week.
In 2018, representatives from the Philippines and China signed a memorandum of cooperation that was expected to result in a definitive deal for a planned joint exploration of resources in the WPS.
With the termination, however, it was not clear whether or not the government will now allow the resumption of activities of local oil and gas exploration firms in the contested waters.
“The DOE firmly stands for the assertion of Philippine sovereign rights through the promotion of exploration in the WPS. Following the Security, Justice, and Peace Cabinet Cluster’s (SJPCC) suspension order and now with the termination of negotiations with China, the DOE, in coordination with the SJPCC for safety and security concerns, continues to pursue talks with existing service contract holders so they can proceed with their work programs,” said Alfonso Cusi, DOE secretary, in a statement.
Last April, oil and gas exploration firm, PXP Energy Corp. halted its activities in both SC 75 and SC 72 that are located near the WPS.
The company said the DOE issued a new requirement, SJPCC clearance, to be able operate in the contested waters.
PXP Energy said the requirement was announced by the DOE in a letter dated April 6.
In a virtual stockholders meeting held recently, PXP Energy president Daniel Stephen Carlos said the company continues to coordinate with the DOE, especially with the entry of a new administration, on the next steps to take.
PXP Energy holds a 50 percent interest in SC 75 located in Northwest Palawan while Forum Energy Ltd. where PXP holds a direct and indirect interest of 79.13 percent, has a 70 percent participating interest in SC 72 also located in Northwest Palawan.
The company also has its other projects in the Philippines that are not affected by the geographical tensions in the WPS, including SC 40 in Northern Cebu and SC 74 also located in Northwest Palawan.
