Outgoing Energy Secretary Alfonso Cusi will leave it to the next administration to decide whether or not to proceed with oil and gas exploration activities in the disputed area of the West Philippine Sea.
Cusi said he was willing to lift the force majeure for service contracts affected by the territorial dispute with China but noted that “it’s better left for the next administration for a more holistic approach.”
In a separate statement, the Department of Energy (DOE) said it firmly stands for the assertion of Philippine sovereign rights through the promotion of exploration in the WPS.
“Following the SJPCC’s suspension order and now with the termination of negotiations with China, the DOE, in coordination with the SJPCC for safety and security concerns, continues to pursue talks with existing service contract holders so they can proceed with their work programs,” the DOE said.
Outgoing Foreign Affairs Secretary Teodoro L. Locsin Jr. announced the termination of joint oil and gas negotiations with China last Thursday (23 June).
In 2018, the signed memorandum of understanding on cooperation on oil and gas development between the People’s Republic of China and the Philippines designated the DOE as the co-vice chair in the Inter-Governmental Joint Steering Committee (IGJSC).
The IGJSC was established to serve as the official negotiating forum between the two countries on the matter.
DOE welcomed this development, as it has always strongly believed in the value of negotiating with China and other claimant-countries such as Vietnam.
The IGJSC convened only once on 28 October 2019 and no agreement was reached during said meeting, it said.
Despite this, the DOE said it promoted exploration in the WPS through the Philippine Conventional Energy Contracting Program, where it opened areas for application and nomination, reviewed bids, and issued licenses.