Secure energy sector (3)

The Department of Energy under President Rodrigo Duterte successfully navigated the challenges from the conflicting claims in the West Philippines Sea.

While under Philippine and international laws, the regulatory jurisdiction and licensing authority of the Department of Energy extend into the WPS, China has repeatedly challenged it.

The situation has not improved even with the international arbitration ruling favoring the Philippines.

The 2016 ruling of the Permanent Court of Arbitration essentially invalidated the nine-dash line claim of China covering the entire WPS and upheld the international rights of the Philippines over the area of conflict.

In 2011, Chinese armed vessels stopped a vessel of contractor Forum Energy from surveying Recto Bank, forcing the Philippines to suspend oil and gas activities in the disputed waters.

In the arbitration award, the Philippines was declared as the only country that has a right to oil and gas resources in the Recto Bank.

China, however, until now is preventing any activities in the WPS and has threatened to impose its claimed rights over the area.

DoE skillfully meandered through the difficulties based on a two-pronged approach.

It was part of the Inter-Governmental Joint Steering Committee created under a 2018 memorandum of understanding on cooperation on oil and gas development between China and the Philippines.

Under the aegis of President Duterte, the DoE lifted the suspension of exploration and research activities in WPS.

Applications and nominations of areas licensed under the Philippine Conventional Energy Contracting Program were accepted indicating the full work resumption in the area.

The strategy was meant to break the paralysis imposed on the country over WPS and jumpstart economic activities to ensure the country's energy security.

A host of problems confronted the government still as a result of China's interjections. The DFA was able to convene the IGJSC only once in 2018 and was unable to organize a technical-legal working group that precluded any formal negotiations with China.

Instead, the DFA allowed representatives of private corporations, namely from Forum Energy and PXP Energy, to informally negotiate with China's Ministry of Foreign Affairs and the state-owned China National Offshore Oil Corp.

Forum and PXP met with Chinese diplomats and CNOOC representatives at least 14 times between 2018 and 2020. During these 14 meetings, no Philippine government representative was present.