The Department of Energy is preparing to implement the 60-40 ownership rule in the planned joint exploration with China over the West Philippine Sea, an official said Thursday.
Energy Undersecretary Felix William Fuentebella said the Philippine and Chinese governments were in talks for the joint exploration.
“Our governments are talking, but as far as our government is concerned…we are bound by the provisions of our Constitution,” Fuentebella said during the pre-State-of-the-Nation briefing.
Energy Secretary Alfonso Cusi earlier said a memorandum of understanding with China would govern the framework of the joint development at the West Philippine Sea, but the talks were stalled amid the COVID-pandemic last year.
“Under the disputed area, we are saying we have an MOU with China on how to go on a possible joint exploration, so that we can exploit and make use of whatever resources are available in the area for the use of our country,” Cusi said.
“We are still working on that. We are still working on the way forward on how we can proceed with the joint exploration,” he said.
Cusi also confirmed talks between Forum Energy Plc. and the China National Offshore Corp., but said no agreement was reached yet.
“There’s a need to further explore what kind of treaty or agreement we can come up with. However, if we follow the Philippine Constitution, we can apply the current 60-40 arrangement which we also apply to other nations or contractor,” Fuentebella said.
“If we can move forward, yes, but we have to follow our Constitution,” he said.
Cusi previously said DOE would stand firmly behind any decision and action of President Rodrigo Duterte regarding the assertion of the exclusive licensing authority of the Philippines over petroleum and other resources in the seabed and subsoil of the West Philippine Sea.
Cusi asked service contract holders to proceed with their commitments following the lifting of the oil and gas exploration moratorium over the West Philippine Sea and issuance of the notice for the resumption of work.
The department is pushing to reinvigorate petroleum exploration and development activities in the country to serve as a cushioning measure against the volatility of oil prices, which has a direct impact on the costs of transport and power.
“We cannot be at the mercy of global energy market volatilities and other geopolitical movements. In this light, we launched the Philippine Energy Contracting Program… to facilitate the exploration and development of our indigenous energy resources, and revitalize our upstream oil and gas sector,” Cusi said.