Philippines lifts yearslong ban on energy exploration in disputed South China Sea

On Thursday, October 15, Philippines officials informed that President Rodrigo Duterte has lifted the ban on oil and gas exploration in the regions of the disputed South China Sea. The ban was put in place six years ago in the wake of territorial tensions with China.

As per reports, Philippines' Energy Secretary Alfonso Cusi said that the companies provided with contracts for oil and gas in three regions off the western Philippines coast have been given official orders to resume operations, which includes a region rich in oil and gas called Reed Bank. 

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Territorial tensions

In response, Chinese warships have tried an offensive against a Philippines vessel in the Reed Bank region but it was still not clear if China was aware of the Philippine decision at the time. Since taking office in 2016, Duterte has maintained friendly relations with China and put off the territorial tensions in his initial years to avoid any untoward incidences with China. 

As per reports, Cusi thanked the Philippines president for approving the energy department’s recommendation to lift the yearslong ban on energy exploration. He said, "We need to explore so we may address the country’s energy security". 

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As per reports, the move comes as an offshore gas field, Malampaya, situated closer to the western province of Palawan, which provides for about 40% of Philippine's power needs for the northern Luzon region, is expected to run out of its reserves in the near future. 

Cusi said, "With the impending depletion of our natural gas reserve in Malampaya... there is an urgent imperative to resume exploration, development, and production activities within our exclusive economic zone to ensure continuity of supply of indigenous resources in the country". 

Philippines Energy Secretary added that the decision by the government to lift the ban places the exploration companies “under legal obligation to put capital into the contract areas and hire Filipino engineers and technical workers to resume exploration".  Cusi is also reported to have added that foreign direct investments into the exploration sector will help boost the country's economy which has already been shattered by the coronavirus pandemic. 

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South China Sea dispute

The South China Sea dispute involves both island and maritime claims by several countries in the region including Indonesia, Malaysia, Philippines, and Vietnam as opposed to China’s claim on the basis of the nine-dash line map. The strategic region of the South China Sea is vital to global trade routes but it clashes with China’s ambitious Belt and Road Initiative (BRI).

The United States has deemed Beijing’s claims to offshore resources across most of the South China Sea as “completely unlawful”. US State Secretary Mike Pompeo said in July that Beijing has offered no coherent legal basis for its “Nine-Dashed Line” claim in the South China Sea since formally announcing it in 2009.

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Inputs/Image: AP