It is a desirable sharing, but it is not final. It could even go up to 61 or more.

National Security Adviser Hermogenes Esperon Jr.

For National Security Adviser Hermogenes Esperon Jr., the 60-40 sharing deal in favor of the Philippines in the planned joint oil and gas exploration in the West Philippine Sea with China is more than fair.

At a press conference in Malacañang yesterday, Esperon stressed that the sharing arrangement could still be increased depending on the inter-government join steering committee discussions in the future.

Esperon cited that Beijing would shoulder the cost of extraction and other expenses during the exploration.

“It is a desirable sharing, but it is not final. It could even go up to 61 or more,” said Esperon.

“They are spending for it and we are getting more from the net share which is more than fair, right?” he added.

Esperon stressed that under the sharing arrangement, Manila will be at an advantage.

“It was acceptable. That simply tells you that we have the upper hand on it,” he added.

The Cabinet secretary, however, emphasized that the arrangement focused only on sharing and not territorial rights.

“But we don’t talk here about territorial rights. We simply talked about it as a sharing that is just fair for us and for the other side,” he explained.

The Philippines and China are tangled in a dispute over several isles and reefs in the West Philippine Sea, along with other claimant countries like Malaysia, Brunei, Taiwan and Vietnam.

The dispute between Manila and Beijing became tense after former President Noynoy Aquino in 2012 filed a formal protest against China before the United Nations Permanent Court of Arbitration (PCA) for incursion in Panatag (Scarborough) Shoal.

The PCA ruled in favor of the Philippines in 2016 triggering massive economic backlash from China.

In pursuit of his independent foreign policy, President Rodrigo Duterte shelved the decision and established warmer bilateral relations with Beijing, resulting in the reinvigoration of Philippine-China economic exchanges.

Esperon hinted that the 60-40 sharing arrangement could still go up in favor of the Manila.

“You will know after the talks,” said Esperon.

He said among the areas being considered for exploration are “areas where there is no licensee or awardee,” including Palawan.

“It will be the PNOC [Philippine National Oil Company] that will participate,” he said.

Esperon said a joint steering committee with representatives from both countries has already been formed last week. They are set to meet next week for the first round of talks of the joint oil exploration.

“I do not have the names now, but the steering committee would be chaired by Foreign Affairs. The members are from the Department of Energy and as well as Department of Environment and Natural Resources,” Esperon said.

“We had it formed a week ago and in fact they are getting ready for the first round of talks within October. At the same time, we will have close to the time, we will have our bilateral consultative mechanisms,” he added.