PXP Energy Corp. said it engaged a team of local and foreign legal experts to craft the framework for the planned Philippines-China joint oil and gas exploration in the West Philippine Sea.
“I think there have been some suggestions. We have engaged both local lawyers and international lawyers to help us craft a legal structure that would test sovereignty of the Philippine government and what these lawyers think might be acceptable to China,” PXP Energy chairman Manuel Pangilinan said.
President Rodrigo Duterte earlier announced the planned joint exploration of the Philippines and China in the disputed West Philippine Sea under a possible 60-40 percent sharing agreement.
The Philippines and China also formed a panel on the way forward for the joint exploration, Energy Secretary Alfonso Cusi said.
PXP Energy controls Forum Energy Plc. which holds a 70-percent stake in service contract 72 or the Recto Bank, part of the disputed area of the Philippines and China.
Exploratory drilling in SC 72 and other areas in the West Philippines Sea was put on hold under a force majeure after tension between Manila and Beijing escalated in the past years.
Pangilinan was previously in talks with China National Offshore Oil Corp., China’s state-owned company in the hopes of diffusing tension with China over the West Philippine Sea dispute.
Pangilinan said PXP had not yet revived any discussion with CNOOC, but feelers were sent this year on “whether we could meet with them again as soon as they’re available to talk about the South China Sea situation.”
Pangilinan also said the company had yet to talk with the government on the lifting of the moratorium on oil drilling.
“I think a great deal of it will depend on timeframe by which Philippine government, China government could agree on a protocol, code of conduct for a joint, cooperative service development etc. of the South China Sea,” he said.
Pangilinan said PXP Energy was waiting for the two governments “to sort things out” but he was hoping that a positive outcome would be achieved soon.