The Philippines: Duterte Lifts Offshore Drilling Moratorium

Enrico Dela Cruz
Friday, October 16, 2020

Philippines President Rodrigo Duterte has lifted the moratorium on petroleum exploration in the South China Sea, paving the way for three projects to resume, including a possible joint venture with China.

Energy Secretary Alfonso Cusi said on Thursday that service contractors were notified to resume energy-related activity in the area, which had been suspended from 2014 due to territorial disputes.

China claims almost the entire South China Sea, believed to be rich in energy and marine resources. Brunei, Malaysia, Vietnam and Taiwan also have claims.

Last year Duterte said Beijing had offered Manila a controlling stake in a joint energy venture in the South China Sea, if it sets aside an international arbitral award that went against China.

The Philippines had imposed the moratorium while awaiting a ruling in a case by the Permanent Court of Arbitration in the Hague, which in 2016 invalidated China's claim to sovereignty over most of the South China Sea.

Cusi said the decision to lift the moratorium was arrived at "in good faith and with full regard of the ongoing negotiations between the Philippines and China, and Forum Ltd and the China National Offshore Corp" (CNOOC).

Forum, a unit of the Philippines' PXP Energy Corp, operates Service Contract 72 covering gas exploration in the Reed Bank, which is within the disputed territory. PXP has had talks with CNOOC about joint exploration and development there.

Two other exploration projects have been given the go-signal, such as SC 59 operated by Philippine National Oil Company and SC 75, also by PXP.

"The lifting of the suspension places the service contractors under legal obligation to put capital into the contract areas and hire Filipino engineers and technical workers," Cusi said in a statement.

The Chinese embassy in Manila did not respond to Reuters' request for comment. 

(Reporting by Enrico Dela Cruz; Additional reporting by Neil Jerome Morales; Editing by Catherine Evans and Toby Chopra)

Categories: Drilling Industry News Activity Asia Regulations The Philippines

Related Stories

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

PV Drilling’s Jack-Up Rig Returns to Asia Ahead of April Drilling Ops

CNOOC Makes Major Oil Discovery in Bohai Sea

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

Blackford Dolphin Semi-Sub to Keep Drilling Offshore India

SED Energy’s GHTH Rig Kicks Off Ops for PTTEP

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

MDL Secures Cable Laying Job in Asia Pacific

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Current News

Woodside to Supply LNG to JERA During Japan's Winter Peak

Fugro, PTSC G&S Extend Partnership for Vietnam's Offshore Wind Push

Thailand's Gulf Energy Eyes Long-Term LNG Supply

OceanMight Gets Petronas’ Offshore Construction Job in Malaysia

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

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