To minimize the country’s dependence on imported oil, Malacañang said the government is working double time so it could sign a joint oil-exploration deal with China in November.
Chinese President Xi Jinping, who is slated to visit the country next month, is also expected to sign at least 10 loan agreements for infrastructure projects that will be implemented under the “Build, Build, Build” program.
The Chinese president’s visit was also a follow-up to the recent high-level economic meetings between the Philippine and Chinese economic and infrastructure managers in Beijing last month.
Presidential Spokesman Harry L. Roque Jr. said in a briefing on Tuesday that the concerns of the public over high oil prices prompted the government to push for joint oil exploration in the West Philippine Sea.
“We are doing everything we can to make sure that when President Xi comes here, we can sign a joint exploration we can already start the joint exploration of natural gas and oil so we will have energy security,” Roque said.
He added that the joint exploration deal will not be hampered by conflict in West Philippine Sea.
“Based on initial studies, there is natural gas and oil in Service Contract [SC] 72. That is why the President is also saying that if we will stop the [planned] exploration in SC 72 because of the conflict [in the West Philippine Sea], what will happen to us? We will just continue to import oil,” Roque said in Filipino.
Although he expects that the treaty with China will be signed “as soon as possible,” Roque said the initiative will not immediately yield. But the government expects that the Philippines will have a new source of natural gas and oil before Malampaya dries up.
“Because as it is, the country is dependent on foreign crude products. If Malampaya, which is our source of electricity, dries up, we will have a bigger problem,” he said. “So we are expecting that Malampaya will last until 2032 so we are hoping that around 2027 there will be already commercial production in SC 72.”
To recall, the Department of Energy issued a moratorium on oil exploration and drilling works in SC 72 and SC 75 in December 2014 and 2015, respectively, amid the country’s maritime dispute with China. Asked if there is already a move to lift the moratorium, Roque said there will be a “step-by-step process” since it is also being claimed by China.
“We will first have an Executive Agreement on joint exploration. After that, the oil exploration can already push through,” he said.
The Duterte administration has been criticized for taking a “softer approach” when it comes to dealing with China on the maritime dispute in exchange for investments and funding for infrastructure projects.
The Hague-based Permanent Court of Arbitration issued the landmark decision invalidated China’s massive claims to the West Philippine Sea. But up to this day, China refuses to recognize the arbitral ruling.