The Department of Energy (DOE) said talks for the possible joint exploration of the West Philippine Sea between the country and China continue in this last few months of the Duterte administration.
DOE Undersecretary Felix William Fuentebella said in an online briefing yesterday negotiations continue but noted exploration plans will be within the provisions of the Philippine Constitution.
“As far as our government is concerned, we are bound by the provisions of our Constitution. Meaning to say, we can talk to (China) but our rules will be limited by the provisions of the constitution,” Fuentebella said.
Fuentebella added there is also a need to further study what kind of treaty or agreement that the governments of China and the Philippines should draw up to proceed with the joint exploration.
“However, if we follow the Philippine Constitution, we can apply the current 60-40 arrangement which we also apply to other nations or contractors…,” Fuentebella said, referring to the ownership structure with the Philippines having the majority stake in the arrangement.
In 2017, DOE Secretary Alfonso Cusi signed a memorandum of understanding with the National Energy Administration of China for various collaboration projects including training, renewable energy opportunities as well as the formulation of the country’s power mix.
Last year, President Duterte lifted the suspension of oil and gas exploration activities in the West Philippine Sea.
Cusi had noted the “urgent imperative to resume exploration, development and production activities within our exclusive economic zone to ensure continuity of supply of indigenous resources in the country” in support of the impending depletion of the Malampaya resource.
Cusi earlier said the lifting of the moratorium would attract foreign direct investments and would generate high-skilled jobs.
But even after the lifting, holders of service contracts 59, 72 and 75, PNOC-Exploration Corp., Forum Ltd. and PXP Energy Corp. have yet to resume activities due to the ongoing dispute.
At present, there are only 19 active petroleum service contracts in the Philippines with Shell Philippines Exploration, Total E&P, PNOC-Exploration Corp., Nido Petroleum, Philodrill, PXP Energy and Galoc Production Co. as operator-partners.
