“The deal is expected to be ready before Chinese President Xi Jinping visits Manila in November.
China and the Philippines are now working on details of a 60-40 exploration deal, in favor of the nation, in areas at the West Philippine Sea (WPS) that will be patterned after the Malampaya natural gas arrangement with foreign partners.
The scheme was opposed by Sinophobic former President Noynoy Aquino, saying that the Philippines does not have any obligation to share its resources with China.
Perhaps, had the other party been American, Noynoy would have readily agreed to a WPS deal. The Malampaya deal had proven that the sharing scheme is beneficial to the country which gets from P15 billion to P16 billion share a year in royalty from the gas project.
Steady energy supply was also provided Luzon and Metro Manila through power plants that Malampaya supplies with fuel.
The 60-40 deal will be fleshed out by a technical working group (TWG) that will have representatives from both countries.
Foreign Affairs Secretary Alan Peter Cayetano said China was notified of the creation of the country’s TWG.
The signing of the agreement follows which Cayetano said would be “better for everyone” the sooner it is done.
The energy project may start production by the fourth year and the agreement can be sealed this year, he said.
Ironically the setup of the TWG would have a legal team similar to the experts sent to represent the country in the arbitration proceedings during the term of Noynoy.
The difference, however, is that “it’s not a legal team that’s going to file a case, but a legal team that’s going to advise us and help us negotiate,” according to Cayetano.
Noynoy’s worry about a deal signed at the expense of the Permanent Court of Arbitration (PCA) also proved unfounded.
The legal team will focus on oil and gas, on constitutional law and on the United Nations Convention on the Law of the Sea, Cayetano said.
Indeed, the deal is being rushed, Cayetano said, not for any political considerations but the fact that the Malampaya field is expected to be depleted by 2024.
The position of the government that it will not abandon the PCA ruling remains but Cayetano said opting for a joint exploration talks ahead of settling the territorial dispute does not necessarily mean giving up the country’s sovereign rights.
He said if the country is to wait for a decision on territory, “it might take forever.”
Depending on the negotiations for the terms of the agreement, Cayetano said the country may even salvage a better deal than Malampaya.
The deal is expected to be ready before Chinese President Xi Jinping visits Manila in November after attending the Asia-Pacific Economic Cooperation meeting.
“The Malampaya deal had proven that the sharing scheme is beneficial to the country which gets from P15 billion to P16 billion share a year.
President Rodrigo Duterte had stated his preference for pursuing cooperation with Beijing while both countries find ways to settle overlapping territorial claims.
The gains being achieved from engaging China is in contrast to the uncertainties caused by Noynoy’s confrontational position abetted by then US President Barack Obama.
It was during the term of Noynoy that the Enhanced Defense Cooperation Agreement (EDCA) was signed.
EDCA provides for a rotational basing agreement of American military forces in the country.
The agreement, in turn, was the key ingredient in the Asia-Pacific policy pivot of the Obama administration in which US military troops and assets were redeployed in Asia in an effort to contain China and North Korea. The basing agreement allows US troops and hardware to pass through the Philippines.
To provide a semblance of support, the US sold to the Philippines a recommissioned Hamilton-class US Coast Guard cutter which was renamed the BRP Gregorio del Pilar.
Apparently under US guidance, Noynoy deployed the Philippine Navy ship to round up Chinese poachers near Scarborough Shoal that China treated as a provocation since the use of a Navy Ship means a military action.
The arrests of the Chinese poachers then triggered a standoff as China increased its naval presence in the contested WPS areas.
The standoff resulted in the Chinese’s permanent presence in the area after Noynoy pulled out Philippine vessels supposedly due to foul weather.
Had Noynoy kept his lines open with China, the benefits from resources in the WPS could have long been flowing.
Three decades after the Marcopper mining disaster devastated Marinduque’s waterways, the province is again pressing the…
Housing is probably the biggest issue affecting people the world over.
Malacañang on Monday called for a more thorough investigation into the questioned flood control projects in Taguig…
The defense on Monday backed the move by senator-judges to exclude a prosecution witness who testified on the firearms…