China, Philippines: 'Bigger Step' Possible Offshore

Friday, August 30, 2019

Chinese President Xi Jinping said China and the Philippines could take a "bigger step" in the joint development of oil and gas resources in the South China Sea if they can "properly" handle their dispute over sovereignty.

Xi made the remarks on Thursday in a meeting in Beijing with Philippine President Rodrigo Duterte, who has positioned himself as a friend of Beijing but has come under growing pressure at home to push back against China's maritime assertiveness.

The visit comes amid a recent rise in tension on multiple fronts, with Chinese vessels challenging energy assets and sea boundaries of Malaysia, Vietnam and the Philippines, prompting the United States to accuse China of "coercive interference" and holding hostage $2.5 trillion of oil and gas in the region.

Duterte's spokesman said earlier this month that he would meet Xi to discuss a 2016 arbitration ruling that invalidated China's claim to sovereignty over most of the South China Sea.

A report on Thursday's meeting by China's state news agency Xinhua made no mention of the ruling, which China has vociferously disputed.

It said Xi urged the two sides to "set aside disputes, eliminate external interference, and concentrate on conducting cooperation, making pragmatic efforts and seeking development".

"As long as the two sides handle the South China Sea issue properly, the atmosphere of bilateral ties will be sound, the foundation of the relationship will be stable, and regional peace and stability will have an important guarantee," it quoted Xi as saying.

The two sides could take a "bigger step" in the joint development of offshore oil and gas, it quoted Xi as saying.

Duterte "expressed his view that the path to peacefully resolving the South China Sea disputes is through cooperation, rather than confrontation", according to Xinhua.

He also pledged to speed up joint maritime oil and gas exploration with China.

On Thursday, China and the Philippines announced the establishment of an "intergovernmental joint steering committee and a working group between relevant enterprises" on oil and gas cooperation, Xinhua reported.

China's claims in the South China Sea, through which about $5 trillion in ship-borne trade passes each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.


(Reporting by John Ruwitch; Editing by Michael Perry)

Categories: Energy Asia

Related Stories

Inpex Moves $21B Indonesian LNG Project Closer to Investment Decision

Seatrium Inks $390M Deal to Complete Four Offshore Rigs for Keppel’s Rigco

PTTEP, Eni Launch Joint Venture for ADNOC-Operated Ghasha Offshore Project

Oil Markets Brace for Years of High Prices as Iran War Drags On

Jack-Up Rig Arrives in Indonesia for Conrad Asia Energy's MOPU Conversion

Murphy Oil Finds More Oil Offshore Vietnam, Côte d'Ivoire

Eni Agrees Indonesian Gas Asset Sales to Pertamina and Medco

Iran Weighs US Response as Hormuz Reopening Talks Stall

Iran Set to Keep Hormuz Shut Until Seven Demands Are Met

LNG Flows Through Hormuz Hit Seven-Month High

Current News

Energy Drilling Lands $87M Drilling Job Offshore Malaysia

Inpex Moves $21B Indonesian LNG Project Closer to Investment Decision

Woodside Agrees to Sell Greater Sunrise Stake to TIMOR GAP for Up to $200M

Seatrium Inks $390M Deal to Complete Four Offshore Rigs for Keppel’s Rigco

Indonesia Cuts Singapore Pipeline Gas Flows by 9% to Meet Domestic Demand

Idemitsu Taps PV Drilling for Vietnam's Offshore Drilling Campaign

Indonesia's Jangkrik FPU Set for Major Gas Output Boost

PTTEP, Eni Launch Joint Venture for ADNOC-Operated Ghasha Offshore Project

Oil India Discovers Gas in Shallow Waters of Krishna-Godavari Basin

Masirah Oil Starts Yumna Offshore Drilling Ops After Months of Delays

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com