Philippines to start South China Sea oil drilling without Beijing

Philippine energy chief said PXP Energy can survey Reed Bank in the contested sea even without partnering with China’s CNOOC

President Duterte last month lifted a six-year ban on South China Sea oil exploration

2-MIN READ2-MIN

A Chinese offshore oil platform in the South China Sea. Photo: Xinhua

Published: 4:28pm, 4 Nov 2020Updated: 4:33pm, 4 Nov 2020

The Philippines said oil exploration in the disputed South China Sea can proceed without China, in what could be a further sign of the Southeast Asian nation’s tougher stance against Beijing.

Philippine Energy Secretary Alfonso Cusi said PXP Energy Corp. can survey Reed Bank in the contested sea even without partnering with China National Offshore Oil Corp.

A unit of the Philippine oil exploration company, which is in talks with CNOOC, holds the right to drill for oil and gas in the area under Service Contract 72, one of the five such contracts allowed to resume exploration.

“If they can do it by themselves, go ahead,” Cusi said at a virtual briefing on Wednesday, when asked if PXP should seek China’s permission to proceed with a survey. “If they can’t do it and they need a partner, they have to partner with China.”

President Rodrigo Duterte last month lifted a six-year ban on South China Sea oil exploration, which his spokesman described as an assertion of the Philippines’ rights in disputed waters.