PBBM order on PH-China oil talks ‘forthcoming’; JV says no quick fix

President Marcos Jr. has yet to give an official marching order allowing Manila to join oil and gas exploration with Beijing in the South China Sea, though, chances are it would eventually be “forthcoming” to ensure a steady fuel supply in the country amid global disruption, the Department of Foreign Affairs confirmed Wednesday. 

The development follows Marcos’ interview with Bloomberg, wherein he explicitly stated that the United States-Israel war on Iran may serve as an “impetus” for the Philippines and China to revive stalled negotiations for a joint energy exploration in the contested waters of the SCS despite their longstanding maritime dispute.

In a briefing, DFA Secretary Maria Theresa Lazaro said there is no directive from Marcos at present to restart oil talks with China, “but I think it may be forthcoming.” 

She pointed out that the possible pact is “not something new” because it has long been on the table, though “a little misunderstanding on the finer points of the discussion” has hindered the agreement from coming to fruition. 

Another contributing factor, she added, is the issue of the constitutionality of the agreement, which had been declared unconstitutional and void by the Supreme Court as early as January 2023. 

“There are many issues, like possible constitutional issues. So if ever it comes to the point that there would be [a] discussion, we'll see how it unravels because I think negotiators also know the pitfalls when it comes to past negotiations,” Lazaro concluded. 

Joint exploration ‘unconstitutional’

In 2005, a tripartite agreement was forged between the Philippines, China, and Vietnam to carry out a Joint Marine Seismic Undertaking (JMSU) aimed at exploring potential oil and natural gas resources in some parts of SCS. 

The pact covers 142,886 square kilometers of the SCS, the majority of which is within Manila’s 200-mile exclusive economic zone, prompting concerns about compromised national sovereignty. 

The SC later ruled that the JMSU was “unconstitutional” for allowing wholly-owned foreign corporations to participate in the exploration of the Philippines natural resources in violation of Section 2, Article XII of the Constitution.

The provision mandates that the exploration, development, and utilization of natural resources shall be under the full control and supervision of the state.

The SC ruled in favor of the petitioners—former progressive lawmakers Satur Ocampo and Teodoro Casiño, among others—that because the JMSU allowed foreign corporations wholly-owned by China and Vietnam to undertake large- scale exploration of the Philippines’ petroleum resources, it falls within the ambit of the provision in question, and therefore must be void. 

Marcos is adamant about reviving the agreement for joint oil and gas exploration with China to keep the country’s fuel supply uninterrupted amid the ongoing oil crisis caused by the war, notwithstanding the SC verdict.

Alhough the Chief Executive underscored that tensions in the disputed West Philippine Sea have hampered efforts to reach an official agreement with Beijing. 

Beijing oil deal won’t help: JV

Senator  JV Ejercito, who lamented the slow response of the administration to preempt an oil shortage, argued that even if the joint exploration comes to fruition this time, it will not immediately resolve the crisis. He pointed out that the plan would be merely ineffective, considering that it will take a “minimum of five years” for oil to be extracted. 

“Were already in crisis now…So, because of the situation, I don't think it will help because it will take three to five years before you can extract. So it won't help now,” Ejercito said in a briefing. 

Ejercito and Senator Loren Legarda reiterated their frustration with the administration in addressing the dire effects of the oil crisis that has caused prices of fuel and basic goods to skyrocket. 

Ejercito described the government response as “extremely slow” and that it was merely “reactive” to the situation, instead of taking proactive measures to insulate the Philippines from the oil crisis as early as the US-Israel war on Iran erupted on 28 February. 

Legarda, on the other hand, said that although Marcos had finally heed clamor to declare a state of national energy emergency, the directive was already “overdue” and that the country is already dealing with the rippling effects of the crisis that is driving prices of necessities to jack up. 

“By itself, a declaration of a state of national energy emergency will not protect Filipino families,” Legarda said, adding that the current situation warrants swift and decisive intervention from the government.

The Marcos administration had long insisted that the country was not yet in a crisis despite soaring fuel prices until senators on Tuesday rebuked their persistent denial, prompting Marcos to declare a state of national energy emergency later that day.

Senator Imee Marcos also called out the administration over its supposed lack of direction. She argued that, aside from stopgap solutions like financial and fuel subsidies, the government should lay out concrete and long-term solutions to the ongoing oil crisis.

Specifically, an active negotiation with ASEAN neighbors, such as Malaysia, Brunei, Vietnam, and Thailand, to secure the oil supply and prevent the buffer from depleting.

According to Lazaro, as early as December last year, ASEAN members had already been working to ensure all states parties have enough fuel supply in anticipation of the intensified war, which first broke on June last year after Israel struck Iran.