Philippines President Rodrigo Duterte has agreed to lift a moratorium placed in petroleum exploration projects in the South China Sea. The approval allows the resumption of three projects, including a possible joint venture with state-owned China National Offshore Corp (CNOOC). Contractors have been notified about the decision, the Energy Secretary Alfonso Cusi said. The moratorium was placed in energy projects in the area in 2014 due to territorial disputes with China.
China claims the entire South China Sea, sparking disputes with other claimants Taiwan, the Philippines, Malaysia, Vietnam, and Brunei. The Permanent Court of Arbitration in The Hague invalidated Beijing’s sovereignty claims in 2016. However, China in 2019 offered a controlling stake in a joint venture in the area if the Philippines agreed to set aside the arbitral awards.
Forum Ltd, a subsidiary of Philippines’s PXP Energy Corp, runs Service Contracts 72 (SC 72) on gas exploration in the Reed Bank, located in the disputed area. PXP and CNOOC have had discussions on collaboration in exploration and development in the territory. Two other exploration projects are SC 75 operated by PXP and SC 59 by Philippine National Oil Company.
