Philippines suspends natural gas project in the South China Sea
Forum Energy halts work in South China Sea because area is also claimed by Beijing and the issue is now going before a UN tribunal
The Philippines has suspended operations at a South China Sea natural gas project because the area is also claimed by China and the dispute is before a UN tribunal, its contractor said yesterday.
UK-listed Forum Energy said the Philippine energy department's order halted its exploration activities at the Reed Bank section of the sea, as of December 15 last year.
"Forum... today confirms that the Philippine Department of Energy has granted a force majeure on Service Contract 72 because this contract area falls within the territorial disputed area of the West Philippine Sea," said the firm's parent company, Philex Petroleum.
The area "is the subject of … United Nations arbitration process between the Republic of the Philippines and the People's Republic of China", according to the Philex disclosure released by the Philippine Stock Exchange.
West Philippine Sea is the term used by Manila to refer to waters in the South China Sea that fall within its continental shelf. China claims most of the South China Sea, which is believed to hold vast oil and gas resources - even waters approaching the coasts of its neighbours.
