Lacson sees gains from Philippines-China oil, gas exploration under 60-40 rule

Senate President Pro Tempore Panfilo Lacson on Sunday expressed support for potential joint oil and gas exploration projects between the Philippines and China, citing growing concerns over global energy supply disruptions stemming from the Middle East conflict.

Lacson said the Marcos administration should consider entering into joint energy ventures, including in the West Philippine Sea (WPS), to help secure the country’s long-term energy needs. 

However, he emphasized that any agreement must strictly comply with the Constitution’s 60-40 ownership rule, which favors Filipinos.

“Yes. Four-square behind, sinusuportahan ko kasi sayang eh. Yayaman tayo doon (I am supporting this, I'm four-square behind it. There is so much potential. We can benefit greatly from it),” Lacson said in a radio interview, noting the country stands to benefit from untapped energy resources.

Under the 1987 Constitution, the State may enter into co-production, joint venture, or production-sharing agreements with entities that are at least 60 percent Filipino-owned. 

Lacson stressed that this safeguard must be clearly reflected in any memorandum of agreement or contract with foreign partners.

He added that if China agrees to such terms, it would be a significant development. 

“Pag pumayag ang China, panalo na tayo dahil ibig sabihin nire-recognize nila ang sovereignty ng Pilipinas sa West Philippine Sea o kung saan man ang area na ma-explore (If China agrees, it is a big win for us because it means they recognize our sovereignty in the West Philippine Sea and other areas of the Philippines that the joint exploration may cover),” he said, referring to the implication that China would be acknowledging Philippine sovereign rights in the  WPS. 

Lacson noted that while the disputed waters are believed to be rich in oil and natural gas reserves, the Philippines currently lacks the technical capability and financial resources to undertake large-scale exploration independently. 

China, he said, possesses the necessary technology and equipment.

The senator also recalled that the idea of joint exploration had been discussed during the administration of former President Rodrigo Duterte, alongside then-Senate President Vicente Sotto III and former Senator Gregorio Honasan II. 

According to Lacson, Duterte had been supportive of the proposal at the time.

The renewed call comes as policymakers weigh measures to shield the Philippine economy from external shocks, including volatile oil prices and potential supply constraints linked to ongoing geopolitical tensions.