Philippines to Move Forward with Oil Plans in the South China Sea
Last month, it was announced by government officials that the Philippines’ six year moratorium in the South China sea would be abandoned. This shift in position came at the recommendation of the country’s energy department and was approved by President Rodrigo Duterte. According to Energy Secretary Alfonso Cusi, this reopening immediately allowed the “paving the way for three projects to resume, and for the energy ministry to award more service contracts”. This new avenue spawns certain relief from the country’s energy officials, as there was increasing concern over the country’s ability to find sustainable energy reserves. One such facet that has run into possible depletion is the gas field Malampaya. The gas field accounts for 40 percent of the power directed that is directed towards the northern region of Luzon. As such, Cusi further asserted the importance of exploration by commenting that “With the impending depletion of our natural gas reserve in Malampaya … there is an urgent imperative to resume exploration, development, and production activities within our exclusive economic zone to ensure continuity of supply of indigenous resources in the country”.
The original ban was enacted in 2014 by former president Benigno Aquino III, as conflict arose between the Philippines and China’s with both making claims regarding the sea’s territory. In consequence, the dispute made its way to the Permanent Court of Arbitration in 2015. China’s asserted it had “historic rights” within its so-called “nine-dash line”. On the other hand, the Philippines questioned whether China’s positions were legitimate under the United Nations Convention on the Law of the Sea and if China’s actions in the South China sea infringed on the Philippines’ own sovereign rights within said convention. In 2016, the court eventually rejected China’s alleged concerns over the sovereignty of islands located in the sea’s domain and the delimitation of maritime boundaries, though the court maintained being out of jurisdiction in the matter. Moreover, the “tribunal upheld the Philippines’ exclusive right to exploit marine and fuel resources in its exclusive economic zone”. Nevertheless, China declared the court’s decision to be invalid and remained unmoved in its efforts to preserve control over the sea’s domain.
Since then, other South East Asian countries, such as Indonesia and Malaysia, have also been met with difficulty in trying to negotiate with China over the accessibility to various zones around the sea. However, headway was obtained in 2018 after the Philippines and China agreed to gas and oil exploration as it pertained to “relevant maritime areas”. The agreement stayed clear of directly dealing China’s position of the 9-dash line and insisted that the agreement(MOU)“does not create rights or obligations under international or domestic law”.
As it stands, the Philippines also announced that the National Oil Company (PNOC) would also pursue a cooperative exploration with the China National Offshore Oil Corp(CNOOC) by 2021. Negotiations between the two countries’ companies is an positive feat that should ease problems for the time being. However, as the CNOOC is not China’ main proxy for state affairs, it remains to be seen whether this newfound cooperation can truly bring an end to the dispute. China has yet to make concessions for other countries in the region, and there is no indication it might officially grant the Philippines more rights either. Yet, the matter may expand into a larger political chess board with newcomer India establishing maritime relations with the Philippines and ever present ties with the United States as points of political pressure. As further projects are developed in the area, only time will tell if a permanent solution can be found.
