AFTER denials that an oil exploration deal is in the works in time for Chinese President Xi Jinping’s visit, the Philippines and China signed on Tuesday an agreement on cooperation on oil and gas development in the West Philippine Sea, along with at least 28 other accords.
The Memorandum of Understanding (MOU) on cooperation on oil and gas development between the Philippines and China was signed by Foreign Affairs Secretary
Teodoro L. Locsin Jr. and China’s State Councilor and Minister of Foreign Affairs Wang Yi.
The exchange of agreements was witnessed by President Duterte and President Xi in a ceremony at Malacañang’s Reception Hall.
Energy Secretary Alfonso G. Cusi said in a text message to reporters on Tuesday that the agreement was a “solution [to] how we can enjoy the resources in the area,” particularly in the West Philippine Sea.
As of press time, no details yet were provided regarding the agreement.
However, Malacañang earlier said in October that it is doing everything it can to have an agreement signed during the visit, so that the country will have energy security, given the long time since it last had any new major exploration activities, and given the forecast that the Malampaya oil and gas field in Palawan will dry up in a few years.
Then Presidential Spokesman Harry L. Roque Jr. said they are hoping that around 2027, commercial production would already be possible in Service Contract 72 where natural gas and oil are expected to be found.
Trillanes’s ‘copy’
Ahead of the exchange of agreements, Senator Antonio F. Trillanes IV also leaked to the media on Tuesday a copy of a purported draft Framework Agreement on Joint Maritime Oil and Gas Exploration between China and the Philippines, which stated that the two parties have agreed “to conduct joint and oil gas exploration in relevant sea areas in the South China Sea.”
However, Malacañang has yet to confirm if this was the same framework agreement adopted for the signed MOU.
The purported draft framework agreement also stated that joint oil and gas exploration shall not affect the respective positions on sovereignty and maritime rights and interest of the two parties.
“The Working Group is to discuss the details of the joint exploration. The two parties’ entrepreneurs are to sign contract based on the discussion. The contract is to be performed upon the ratification of the Committee,” the supposed draft read.
Any dispute concerning the implementation or interpretation of the agreement or any other relevant disputes shall be settled through friendly consultation by the two parties.
Expanded cooperation
In his statement at a joint press briefing after meeting Xi, Duterte said the Chinese leader’s visit is a “historic milestone” for the bilateral relations of two countries.
“In the past two years, we have worked hard to lay the cornerstones for the continued advancement of our beneficial cooperation in a wide range of areas. A lot of work remains, but President Xi’s visit gives us new impetus to our mutual efforts to enhance collaboration in ensuring the well-being of our peoples and contributing to peace and stability in the region,” Duterte said.
He said he and President Xi discussed cooperation on the reconstruction and rehabilitation of Marawi, and the Philippines’s participation in China’s Belt and Road Initiative, mutual concerns on defense, security, maritime cooperation, law enforcement, transnational crime, as well as strengthening partnership in combating the trafficking of illegal drugs.
“I personally conveyed to President Xi my appreciation for his valuable support for the Philippines’s many initiatives in regional and international spheres, particularly during our Asean chairmanship last year and the Philippines’s current Country Coordinatorship of the Asean-China Dialogue Relations leading to a sustainable Code of Conduct. I also thanked the Chinese Government for its generous assistance during calamities, such as the recent Typhoon Ompong,” he said.
“With mutual respect, sincerity, and adherence to sovereign equality, I will continue to work closely with President Xi to deepen the relationship between our great countries so we may together secure a peaceful and prosperous future for both our peoples and for the entire region,” he added.
Meanwhile, Xi said in his joint press statement that they have agreed to elevate their relationship into “one of comprehensive, strategic cooperation.”
“This vision charts a clear course for China-Philippines relations and sends a strong message to the world that our two countries are partners in seeking common development,” he said.
China has also committed to work with Asean countries in concluding the COC consultations within three years.
“China and the PHL have a lot of common interests in the SCS. We will continue to manage contentious issues and promote maritime cooperation through friendly consultation, and work alongside other Asean countries toward the conclusion of the COC consultations based on consensus within three years, and contribute our share to peace, stability and welfare in this region.”
He lauded President Duterte’s leadership and expressed support for his endeavors, and said, “We would like to see the PHL playing an even bigger role in regional and international affairs.”
He also invited President Duterte to attend the second Belt and Road forum for international cooperation which China will host next year.
Xi Jinping also committed to help repair road and bridges in Marawi and import more goods in the Philippines.
Before leaving on Wednesday afternoon, the Chinese leader is scheduled to attend to a joint call of House Speaker and former President Gloria Macapagal-Arroyo and Senate President Vicente Sotto III and have a photo opportunity with leaders of the Filipino-Chinese Community.
The list of agreements signed between the two governments include the following:
■ Exchange of MOU between Philippines and China on cooperation on the Belt and Road initiative
■ Exchange of MOU on cooperation on oil and gas development between the Philippines and China
■ MOU between the Foreign Service Institute of the Republic of the PH and the China Foreign Affairs University of the People’s Republic of China
■ Exchange of executive program of the cultural agreement between the government of PH and China for 2019 to 2023
■ Exchange of MOU on basic education cooperation between DepEd of PH and the Ministry of Education of People’s Republic of China
■ Exchange of MOU between the Department of Information and Communication Technology of the PH and Ministry of Industry and Information Technology of China
■ Exchange of MOU between the Cooperative Development Authority of the PHL and Ministry of Agriculture and Rural Affairs of China on strengthening the building of agricultural cooperatives
■ Exchange of infrastructure cooperation program between the PH and China
■ Exchange of program for cooperation on industrial parks development between PH and China
■ Exchange of handover certificate of emergency humanitarian cash assistance between PHL and China
■ Exchange of MOU on jointly promoting the cooperation in key infrastructure projects in Davao region between the DOF of the PHL and Ministry of Commerce of China
■ Handover of certificate of humanitarian cash assistance between the government of the PHL and China
■ Exchange of implementation agreement of the feasibility study for Davao City Expressway project
■ Implementation agreement of feasibility study for Panay-Guimaras-Negros islands bridges project
■ Exchange of MOI on Renminbi clearing arrangement
■ Exchange of protocol for phytosanitary requirement for export of fresh young coconuts from the PHL to China between the DA of the PHL and the General Administration of Customs of China
■ Protocol of sanitary and phyto-sanitary requirements for export of frozen fruits from the Philippines to China between DA, DOH of PH and General Administration of Customs of China
■ Exchange of agreement on economic and technical cooperation between the government of the PH and China
■ MOU on supporting feasibility study of nature projects between DOF of PH and China International Development Cooperation Agency
■ Exchange of letters on project of container inspection equipment
■ Exchange of letters on project of Davao River Bridge Project
■ Exchange of letters on China bridge and road project in Marawi
■ Exchange of MOU on panda bonds issuance
■ Exchange of loan agreement on New Centennial Water Source Kaliwa Dam Project
■ Exchange of commercial contract of Safe Philippines Project Phase 1
■ Exchange of framework agreement for industrial park
■ Exchange of contract for the project management consultancy of the PH National Railways South Long Haul Project – North-South Railway Project
■ Handover of letter of no objection to the organization of Renminbi-Philippine peso foreign exchange trading market
■ Handover of certificate of authority to operate for the Industrial and Commercial Bank of China Limited Manila branch.
Image credits: Mark R. Cristino, Pool Photo via AP