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South China Sea

“We are at that level where we have a very thin reserve,” he said about Luzon.

In the South China Sea, the Philippines wants to soon lift a moratorium on oil and gas exploration as part of a “strategic, win-win” solution with China.

Cusi said his office is seeking to allow a consortium led by PXP Energy Corp. to resume drilling at Service Contract 72, which contains the Sampaguita gas discovery that holds an estimated 11.4 trillion cubic feet of reserves. The exploration area also includes the Reed Bank, claimed in part by both countries.

“We would really like to be pragmatic in our approach” to joint exploration, Cusi said. “Now, the pathway is becoming clearer.”

The Philippines plans to sign a contract with China National Offshore Oil Corp., which was never completed, for joint exploration in uncontested areas, Cusi said. A spokesman for the Chinese company didn’t respond to requests for comment Thursday.