Philippines open to new joint energy talks with China —DFA

The Philippines is willing to talk to China about a joint oil and gas exploration in the West Philippine Sea, the Department of Foreign Affairs said Wednesday.

Foreign Affairs Secretary Enrique Manalo made the announcement in response to a query posed by Deputy Minority Leader France Castro of Alliance of Concerned Teachers party-list in a budget briefing.

"On joint exploration, yes, we did terminate that agreement  between China and the Philippines last June because of lack of applicable law. That is why it broke down," Manalo said.

"But we have indicated to China that we are open to new talks on oil and gas exploration," Manalo added.

Manalo, however, maintained that the Philippines will not compromise its legal claims in the West Philippine Sea in entering into a possible energy exploration deal with China.

"We are open to talks, but on whether we will get to an agreement, our position is that any agreement with China or any other country, we willl not be agreeing to anything which is not in accordance to our Constitution," Manalo said.

"That will be our guiding principle, not only with China but with any other country," he added.

The 1987 Constitution provides that the exploration, development and utilization of natural resources should be under the full control and supervision of the Philippine government.

Likewise, the 1987 Charter allows the Philippine government to enter into a co-production, joint venture or production-sharing agreements, but only with private companies 60-percent owned by Filipino citizens.

The United Nations Permanent Court of Arbitration in the Hague in July 2016 had ruled in favor of the Philippines by rejecting China’s expansive nine-dash line claim of the entire South China Sea.

The same ruling also declared the Spratly Islands, as well as the Panganiban (Mischief) Reef, Ayungin (Second Thomas) Shoal and Recto (Reed) Bank are all within the Philippines' exclusive economic zone and outlawed China’s action of preventing Filipino fishermen to access Panatag Shoal which the UN Court deemed as a traditional fishing ground for both countries.

On Monday, Liu Jian Chao, Minister of the International Department of the Central Committee of the Communist Party of China said that he is hopeful that oil and gas exploration talks between Manila and Beijing will be revived. 

"I hope that the discussions will continue and both sides will demonstrate some kind of flexibility so that, without prejudicing each other's claims or their own positions, so that cooperation could happen," Liu said.

In 2005, the Arroyo administration had signed a Joint Marine Seismic Undertaking (JMSU) deal with China and Vietnam which covered islands located 142,886 square kilometers west of Palawan—all of which are located within the Philippines’ 200 nautical miles off territorial waters based on the United Nations Convention on the Law of the Seas.

The JMSU lapsed in 2008 and was not renewed after critics of the Arroyo administration questioned its legality before the Supreme Court.

The high court has yet to decide on the legality of JMSU.—LDF, GMA News