Secure energy sector (4)
Without any formal negotiation toward a real agreement, it came as no surprise when then-President Rodrigo Duterte ordered the termination of negotiations.
At a time when uncertainties were at their worst in the West Philippine Sea dispute, the Department of Energy initiated internal discussions on alternative scopes and modes of cooperation within the bounds of the 2018 memorandum of understanding.
Such actions were taken by the DoE while waiting for the Department of Foreign Affairs to convene formal negotiations.
In a series of communications with the DFA, DoE leaders expressed their concerns and reservations on the legitimacy of the negotiations undertaken by private sector representatives who are the executives of Forum Energy and PXP.
The DoE then compared notes with other agencies on key aspects of cooperation namely, the delineation of the cooperation field, the allocation of authority, rights and interests in the cooperation area, and the designation of enterprises involved in cooperation arrangements.
Without any formal negotiation toward a real agreement, it came as no surprise when then-President Rodrigo Duterte ordered the termination of negotiations with China under the MoU.
On a different front, the DoE supported efforts by Philippine contractors to resume oil and gas activities.
From 2020 to 2022, the DoE facilitated eleven discussions between Philippine contractors and maritime law enforcement and security agencies in preparation for the resumption of oil and gas activities in the WPS.
Just as Forum Energy and PXP were about to conduct a survey in Recto Bank, the Security, Justice, and Peace Cabinet Clusters ordered a freeze on the activity because of the objection from the Chinese Embassy.
The DoE, however, sought reconsideration from SJPCC on several grounds:
• The decision to suspend will tie the hands of the new administration;
• Suspension will be the status quo, and China will simply insist that the situation be maintained pending negotiations; and
• Vietnam. Malaysia and Indonesia stood their ground and continued with their oil and gas activities even in the face of harassment from Chinese armed vessels.
The government then summed up its predicament in the WPS as to how to balance the pursuit of Philippine sovereign rights and cooperation with neighbors in the region.
