By Samuel P. Medenilla& Manuel T. Cayon
CHINA has expanded its offer in its proposed oil and gas exploration deal with the country in the West Philippine Sea (WPS), according to President Duterte.
Aside from giving Philippines a bigger share in the resources, Duterte said the Chinese government said it is now willing to shoulder additional expenses in the deal.
“Now there is something new [in the negotiation]—China is proposing 60-40 [resource sharing], where 60 [percent] will be our [share]. They will also provide for the equipment and the [operation] of the rig,” Duterte disclosed during a forum in Russia on Saturday.
Last August, government officials said the proposed accord is still going through “intense negotiations” to iron our the details of its provisions, which should be acceptable to both parties.
This despite China’s refusal to recognize the Philippines’s territorial claims in the WPS.
The Philippines is scrambling to find a new source of oil and gas as the Malampaya gas field near Palawan is expected to be exhausted by 2027.
Energy talks
While in Russia, Duterte also talked with some Russian companies for possible oil and gas exploration in the WPS.
“There are a lot of things there we discussed about energy. We will come out with a final report [about it] after the Cabinet meeting. I need to hear everybody in the Cabinet,” Duterte said.
Yet another energy-related matter to be discussed in the Cabinet meeting, expected to be held on October 11, is the government’s talks with Russian officials on nuclear power plants.
Among the 10 pacts signed by Philippine and Russian officials last week, is the memorandum of intent (MOI) on intention to jointly explore the prospects of cooperation in the construction of nuclear power plants in the Philippines.
The signatories to the MOI are “Alfonso Cusi, secretary of Department of Energy; and Evgeny Pakermanov, Rusatom Overseas.”
Pakermanov is president of Raos JSC, an energy company with expertise in nuclear power.
“I have to talk with the Cabinet first,” he said, before he would make a final statement about it. He said he would also talk with the DOJ “if something would come up in that agreement that would require the consent of Congress.”
He said the agreement remained “part of the proposals yet”.
“We have to talk to people, including those who would be affected by that project,” he added.
Greater momentum
In his speech during his arrival at the F. Bangoy International Airport, Duterte said his visit generated greater momentum for the Philippines-Russia relations.
“This is a key element of our thrust to rebalance Philippine foreign policy towards independence, balance, and diplomatic agility. We reaffirmed the Philippines’ strong commitment to a robust and comprehensive partnership with the Russian Federation on the basis of mutual respect, trust, and pragmatism,” he said.
He added that during his meeting with Russian President Vladimir Putin and Russian Prime Minister Dmitry Medvedev, they came up with bilateral cooperation agreements on the peaceful uses of energy, scientific research, health, culture, and foreign policy consultations.
“These areas are important and therefore part of our comprehensive roadmap to build a partnership with a friend and to secure the Philippines’ strategic interests,” he said.
He bared that more than P620 million in business deals were signed during the Philippines-Russia Business Forum in Moscow which he said would generate more jobs and economic opportunities for many Filipinos.
Duterte also stressed that the reinvigorated friendship with Russia started to bear fruits, citing the accreditation of two additional Philippine fishery establishments done by the Russian government.
“This will allow Filipino fishing companies to export our tuna and other products to Russia and the larger market of the Eurasian bloc,” he added.
However, the President said that the surge of Russian tourists and investors in the country would not come early, but remains optimistic of various exploratory visits from the Russian government.
“This is only the beginning. The horizon is wide. There is room for significant growth. The gains we have made in this visit bring us a step closer to our objective of a stable, comfortable, and secure life for all Filipinos. That is my vision for and bounden duty to the nation and I will do everything to achieve that towards that end,” he said.
With a report from PNA