The Philippines has allowed oil exploration in the disputed waters in the South China Sea without China’s involvement. Energy Secretary Alfonso Cusi said local company PXP Energy Corp might survey the Reed Bank in the disputed area even without partnering with CNOOC. Cusi said if PXP could survey on its own then go ahead. Meanwhile, if it needs China’s assistance, then PXP is allowed to partner with China.
President Rodrigo Duterte in October lifted a six-year ban on energy activity in the contested South China Sea, opening a chance of cooperation with China. However, Duterte recently began to lean toward Washingtons and toughened his stance against Beijing.
Manuel Pangilinan, the chairman of PXP, said it had submitted an initial work program to the Department of Energy. He added that the Reed Bank needed further survey but noted that he was not aware that the activity could proceed without China’s involvement.
Analysts said that Beijing would likely block the new exploration in the disputed territory, just like what it did to Malaysia and Vietnam. Meanwhile, Manila is also considering opportunities in other energy sources such as geothermal, gas, and hydro-power, while banning new coal-fired power plants. It is also formulating a national policy in nuclear power.
