THE Philippines and China convened in Beijing the 1st meeting of the Philippines-China Inter-Governmental Joint Steering Committee on Cooperation on Oil and Gas Development, with both sides expressing hopes of moving forward discussions on possible joint exploration activities as the need for new energy sources intensifies.
The Department of Foreign Affairs said the Philippine delegation that
went to Beijing for the October 28 meeting was led by Foreign Affairs
Undersecretary for Policy Enrique A. Manalo. The Chinese delegation was led by
Vice Foreign Minister Luo Zhaohui. Bilateral delegations comprised officials
from the respective foreign and energy ministries, and other
relevant agencies.
In accordance with the Memorandum of Understanding (MOU) on Cooperation on Oil and Gas Development forged earlier between the two governments, both sides confirmed the official establishment of the Oil and Gas Development Inter-Governmental Joint Steering Committee (referred to as the “Committee”).
Both governments also discussed the Terms of Reference (TOR) on Oil and Gas Developments.
“The Committee had a candid, in-depth and friendly exchange on cooperation arrangements under the MOU and agreed to further push forward communication and coordination on oil and gas development, with a view to achieving progress,” the DFA said.
Both sides agreed to hold the Second Meeting of the Committee in the Philippines in early 2020. The exact date place has yet to be determined and mutually agreed upon through diplomatic channels.
The TOR will determine the specific area covered by the agreement. President Duterte and other officials have mentioned a 60-40 sharing in favor of the Philippines in the exploration of Recto Bank (international name is Reed Bank; Chinese name is Liyue Tan) in Palawan. This is within the country’s 200-nautical-mile exclusive economic zone.
Recto Bank is adjacent to Malampaya gas field, which accounts for 20 percent of the country’s power supply but is expected to be depleted in 10 years.
In a press briefing at Malacañang last week, National Security Adviser Hermogenes Esperon Jr.said there has been an initial agreement of 60-40 sharing scheme, but while this scheme is desirable, “it is not final.”
Esperon said, “It could even go up to 61 or more. One percent is always substantial when you talk about such big investments.”
The Philippines and China signed the MOU on joint exploration for oil and gas in the West Philippines Sea during the state visit in Manila of Chinese President Xi Jinping last year.