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

ONGC Plans Major New Indian Oil Reserve

Ruwais LNG Commitments Top 90% Capacity with New INPEX Deal

Saipem Lands $2B FPSO Deal for Offshore Gas Field in Indonesia

Markets: Oil Majors Reload Exploration Hoppers Across Sub-Saharan Africa

Walking Into the Future: ADNOC Drilling Unveils First AI-Powered Island Rig

Saipem to Sell Saudi Shallow-Water Drilling Business to ADES for $285M

Valeura Concludes Nong Yao Drilling Ops, Boosts Gulf of Thailand Production

Conrad Secures Drilling Rig for Mako Gas Field off Indonesia

Velesto’s Jack-Up Rig Up for Gulf of Thailand Drilling Campaign

Vantage Drilling Agrees to $258M Takeover by Eldorado Drilling

Current News

Eni Enlists OneSubsea for Deepwater Umbilical Supply off Indonesia

EnQuest Clears Key Hurdle for $833M Malaysia Offshore Deal

ONGC Plans Major New Indian Oil Reserve

LNG Tankers Resume Hormuz Crossings Amid Tensions

Hormuz Standoff Risks Chronic Instability for Gulf Oil Flows

From Fixtures to Values: Where the Jackup Recovery Is Already Being Priced

Eni and Petronas JV Extend Ventura Offshore’s Drilling Job in Indonesia

Dolphin Drilling’s Blackford Dolphin Secures More Work for Oil India

Oil Surges 3% on Renewed US-Iran Strikes

Offshore Vessel Pair Ordered from Grandweld Shipyard

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