Duterte lifts oil exploration moratorium in West Philippine Sea

Oil exploration activities in the West Philippine Sea may now resume after President Rodrigo Duterte approved the recommendation of the Department of Energy (DOE) to lift the suspension of petroleum activities in the disputed waters.

In a statement on Thursday, Energy Secretary Alfonso Cusi said a “Resume-to-Work” notice was issued by the DOE to the Service Contractors (SC) doing petroleum-related activities in the areas of SC 59, 72, and 75 in the West Philippine Sea.

The activities there were suspended on the ground “Force Majeure” due to the WPS dispute.

SCs 59 and 72 are operated by the Philippine National Oil Company-Exploration Corp. (PNOC-EC) and Forum Ltd., respectively.

Meanwhile, PXP Energy Corp. operates SC 75.

“I thank the President for approving the DOE recommendation. We need to explore so we may address the country’s energy security,” Cusi said.

Under Republic Act 7638 or the "Department of Energy Act of 1992”, the DOE has the authority to regulate the exploration of the country’s indigenous energy resources.

"With the impending depletion of our natural gas reserve in Malampaya, it is the department’s position that there is an urgent imperative to resume exploration, development, and production activities within our EEZ to ensure continuity of supply of indigenous resources in the country,” the Energy chief said.

Cusi noted that the lifting of the suspension will infuse the economy with fresh foreign direct investments and generates high-skills jobs, both of which are need in order to boost economic recovery following the outbreak of the COVID-19 pandemic.

“The lifting of the suspension places the service contractors under legal obligation to put capital into the contract areas and hire Filipino engineers and technical workers to resume exploration,” he said.

The Energy chief said he has already informed Foreign Affairs Secretary Teodoro Locsin of the President’s approval of the DOE recommendation.

Cusi said that the lifting of the moratorium was arrived at in “good faith” and with “full regard of the ongoing negotiations between the Philippines and China, and Forum Ltd. and the China National Offshore Corp. (CNOOC).”

“The oasis of peace that the Philippine Department of Foreign Affairs and the Chinese Ministry of Foreign Affairs envision must also be an oasis of prosperity. For this to happen, the Philippines must restart its economy using the engine of energy resiliency and security,” Cusi said in his letter to Locsin.

In 2015, the DOE suspended all drilling and exploration works in the West Philippine Sea, particularly in the area covered by Service Contract (SC) 72 in the Reed Bank, citing a force majeure as the site is the subject a territorial dispute between the Philippines and China.

In 2019, the Energy department asked the DFA to lift the moratorium covering the disputed waters.

The request was triggered by a letter from Forum Energy Ltd. on lifting the force majeure imposed on Service Contract 72 in the Reed bank. -NB, GMA News