FEC Resources Inc. (FECOF)

[hain]

Manila: Foreign Secretary Alan Cayetano said

oil and gas exploration in the Recto Bank (Reed in the West Philippine Sea), which the government suspended since 2014 due to the territorial dispute with China, will remain on hold for some time.

Foreign Secretary Alan Cayetano said the government has not found a framework to legally justify conducting a joint exploration with China within the Philippines exclusive economic zone (EEZ) in the West Philippine Sea.

The West Philippine Sea is part of the South China Sea, which China claims almost entirely.

“It’s not that simple, they have to wait some more. I am working closely with the secretary of energy (Alfonso Cusi) and we are looking for a framework that will keep to our Constitution and acceptable to claimants in the area,” Cayetano told reporters at the conclusion of the Asean Foreign Ministers meeting on Tuesday night.

He said he could not say when they expect to make a decision, adding they have to clear the agreement with the Supreme Court and with China.

But he said the government is aware of the urgency since the natural gas from the Malampaya project off Palawan may run out in a few years.

“In the disputed areas, the direction the President gave me is to pursue joint exploration first; we have to find out first what is there. Development is a little bit more trickier,” Cayetano said.

“If it’s an area claimed by only China and the Philippines, we would discuss it between ourselves. So we are optimistic and working hard to get there.”

The government had awarded PXP Energy Corp the right to drill in Recto Bank, also known as Reed Bank.

But the exploration was suspended in 2014 when tensions with China heightened after the Philippines sought a ruling before the Permanent Court of Arbitration in The Hague.

In July 2016 the tribunal ruled in favour of the Philippines rights over its 370km EEZ which includes Recto Bank, and invalidated Chinas claims. The exploration however remained suspended. But last month during the visit of Chinese Foreign Minister Wang Yi, Cayetano said they are discussing joint exploration with China.

Supreme Court Senior Associate Justice Antonio Carpio has warned that a joint exploration with China would not be legally possible if Beijing would insist it had sovereignty over waters within the Philippines EEZ.

Cayetano said the Philippines will not press the arbitrary ruling for the time being, saying negotiations with China are working. — Philippine Daily Inquirer/ANN

Read more at http://www.thestar.com.my/news/regional/2017/08/11/manila-oil-exploration-in-disputed-reed-bank-to-remain-on-hold/#1r0O4kJlj3Hg2sSH.99