PHL talking with other South China Sea claimants for oil, gas exploration

The Philippines is working on a framework agreement with countries who have territorial claims in the South China Sea to cover the conduct of exploration of natural resources, a report on Unang Balita on Friday said.

In particular, the Philippines is doing all it can to have a framework agreement that will cover drilling rights for oil and gas exploration, GMA News' JP Soriano reported.

"The DFA [Department of Foreign Affairs] is pursuing the agreements on the undisputed areas. We are not discounting future agreements in the disputed areas but any agreement has to conform to our domestic law and our Constitution," Foreign Affairs Secretary Alan Peter Cayetano said.

According to Cayetano, President Rodrigo Duterte said the Philippines must find a way to tap the natural resources of the country.

While no specific location has been identified yet, drilling for oil and gas will be easier in undisputed areas such as the Malampaya natural gas field in northwest Palawan.

Currently, 40 percent of the power supply of Luzon comes from Malampaya.

Experts however said the oil and gas reserves in Malampaya may be exhausted in 2024.

Studies have shown that Reed Bank (Recto Bank) has more oil and gas reserves. 

Reed Bank is part of the Philippines' Exclusive Economic Zone. It was also part of the territory affirmed to be part of Philippines by the Permanent Court of Arbitration.

Cayetano clarified that it is not true the Philippines has already allowed drilling rights in Reed Bank, which is also being claimed by China.

Chinese President Xi Jinping earlier said a possible war may erupt if the Philippines will conduct exploration in Reed Bank.

"Ang instructions lang ng ating Pangulo simple lang: not to give up a single centimeter or single inch of our claims, whether it's economic entitlements or whether it's territorial," Cayetano said.

Drilling for oil and natural gas on the Reed Bank may resume before the end of the year, a Philippine energy official said on Wednesday, as the government prepares to offer new blocks to investors in bidding in December.

The Philippines suspended exploration at the Reed Bank in late 2014, as it pursued international arbitration over territorial disputes.

Ismael Ocampo, director at the Department of Energy's Resource Development Bureau, told reporters the agency expected the suspension to be lifted in December. —KG, GMA News