No immediate joint oil exploration agreed between Philippines, China: Locsin

November 22, 2018

Foreign Secretary Teodoro Locsin Jr. on Thursday said there is no agreement for the Philippines and China to start joint exploration in the South China Sea.

He said the memorandum of understanding signed during the state visit of Chinese leader Xi Jinping  seeks to study and discuss prospects of a possible energy cooperation between the two countries.

In an interview with CNN Philippines, Locsin read excerpts of the Philippines-China Memorandum of Understanding on Oil and Gas Development, saying both countries agreed to establish "an intergovernmental joint steering committee" to look into possible energy cooperation.

The committee – to be co-chaired by the foreign ministries and co-vice chaired by the vice ministries – “will be responsible for negotiating and agreeing the cooperation arrangements in maritime areas to which they will apply, and deciding the number of working groups to be established and for which part of the cooperation area each working group is established.”

“Each working group will negotiate and agree on inter-enterpreneurial, technical, and commercial arrangements that will apply in the relevant working area,” said Locsin.

Opposition Senator Antonio Trillanes IV earlier this week provided reporters a copy of one of the earlier drafts of an alleged framework agreement on the oil exploration deal drafted by the Chinese government. Both sides instead signed a memorandum of  understanding.

Under the memorandum of understanding, Locsin, who said he wrote the signed document, said each working group that will look into a possible exploration deal between the Philippines and China “will consist of representatives from enterprises authorized by the two governments."

The China National Offshore Oil Corporation and the Philippine National Oil Company will also be involved.

Locsin said the two governments are hoping to agree on the cooperation arrangements “within 12 months of this memorandum of agreement.”

“All discussions, negotiations, and activities of the two governments, or the authorized enterprises under or pursuant to this Memorandum of Understanding will be, without prejudice to the respective legal positions of both governments,” Locsin said, quoting the MOU.

The MOU says it “does not create rights or obligations under international or domestic law.” DMS