Four senators welcome 60-40 exploration deal with China in West Philippine Sea

August 1, 2018

Four senators welcomed the willingness of China to enter into a 60-40 joint exploration agreement with the Philippine government for possible resources in the West Philippine Sea. Foreign Secretary Alan Peter Cayetano said in a press conference Tuesday before he left for Singapore for an ASEAN meeting  said a draft framework for planned joint exploration by the Philippines and China for oil and gas in the West Philippine Sea could be out by September. In a TV interview, Cayetano said the venture to explore natural resources would be 60 percent Filipino and 40 percent Chinese. "That's our starting proposition and our Chinese counterparts are open to it," Cayetano said in a 24 Oras report over GMA 7. Senate President Vicente Sotto III said the statement of China was very reassuring because it indicates they are accepting the Philippines is in an advantageous position. Senator Panfilo Lacson said the 60-40 ratio complies with the constitutional requirement on foreign investment. “It is practical and sensible to enter into a joint exploration with China. First we do not have the resources nor the technology to do it alone,” Lacson said. “Second, the West Philippine Sea is so rich in oil and natural gas and it is time to make use of these natural resources to uplift the lives of our people. It could also provide us the wherewithal to pursue massive infrastructure development to further enhance investments,” he added. Senate President Pro Tempore Ralph Recto said the proposal “sounds good” if the reports are true. Senator Joel Villanueva said the government had entered into a similar joint exploration agreement in the past with the Royal Dutch Shell Company for the Malampaya natural gas project. “I don’t see any problem entering into a similar arrangement with China. But then again, the devil is in the details,” Villanueva said. “I hope that the DOE (Department of Energy) will be vigilant and submit proposed joint exploration contracts for notification of Congress and to inform our citizens of these deals,” he added. Villanueva said it is important to ensure any agreement with China is purely for a beneficial  business transaction. Senator Risa Hontiveros, on the other hand, called the proposed agreement “preposterous and treacherous.” Hontiveros said the DFA's plan is absurd as it recognizes China's claim and ownership over the West Philippine Sea and nullifies the decision of the Permanent Court of Arbitration. Senator Paolo Benigno Aquino IV said a treaty is needed to undergo such a joint exploration agreement. Aquino said there is a need for the Senate to know all deals the government has entered into with China, particularly those that deal with its territory. “We have to ensure that our territories are protected. We cannot give up our territories in deals such as this. We want to make sure and we want to be sure that at the end of the day, in our dealings with China, the Filipinos will be at an advantage,” he said. DMS