60-40 panels being filled

President Xi Jinping told President Rodrigo Duterte he will agree to the proposed cooperative venture and give the Philippines 60 percent share in the projects if the Permanent Court of Arbitration award that favored the Philippines will not be invoked.

The long-awaited establishment of a Philippine technical working group (TWG) that will thresh out details with its counterparts in China the mechanism for the joint exploration in the contested West Philippine Sea has started.

Chinese President Xi Jinping told President Rodrigo Duterte he will agree to the proposed cooperative venture and give the Philippines 60 percent share in the projects if the Permanent Court of Arbitration (PCA) award that favored the Philippines will not be invoked.

“Set aside your claim… They want to explore and if there is something, they said, ‘We would be gracious enough to give you 60 percent.’ Forty (percent) would be theirs. That was the promise of Xi Jinping,” the President told reporters in a briefing.

Yet, China agreed to the talks proceeding despite the arbitral issue not being settled.

Department of Energy (DoE) Secretary Alfonso Cusi told Daily Tribune that the Department of Foreign Affairs (DFA) asked the Energy department last month to submit its proposed members to the Inter-Governmental Joint Steering Committee (IGJSC).

“The DoE already submitted. (The) DFA is expected to complete the lineup and make the announcement soon,” he said.

Cusi said the DoE proposed to serve as the co-vice chairman of the IGJSC.

In November 2018, the Philippines and China signed a memorandum of understanding on oil and gas development in the long-disputed waters. Among the areas being considered for exploration were Service Contract (SC) 57, covering the non-contested northwest Palawan and SC 72, which covers Reed Bank (Recto Bank) and also one of the disputed areas.

Presidents Duterte and Xi were both present to witness the signing. It was among the 29 deals and agreements the two countries inked during Xi’s first visit to the Philippines.

Meanwhile, during Duterte’s fifth visit to China on 29 August, state-run Xinhua News Agency reported that the two countries have already finalized agreements on joint oil and gas exploration.

Xi was quoted as saying that he was willing to work with Duterte to continue to grasp the trend of times from a strategic and long-term perspective, leading the sound development of bilateral ties.

“This will not only benefit the two countries and their peoples, but will also add positive energy to regional peace and stability,” Xi was quoted as saying.

He said the two sides should set aside disputes, eliminate external interference, and concentrate on conducting cooperation, making pragmatic efforts and seeking development.

Xi has said that as long as the two countries handle the South China Sea issue properly, “The atmosphere of bilateral ties will be sound, the foundation of the relationship will be stable, and regional peace and stability will have an important guarantee.”