Palace: Joint exploration in West Phl Sea only in disputed areas

MANILA, Philippines - Malacañang clarified yesterday that any joint exploration of the West Philippine Sea with China would be confined to disputed areas to avoid constitutional violations.

Presidential spokesman Edwin Lacierda said the government would see to it that any foreign agreement would serve the national interest.

The government has agreed to allow Chinese government-owned firm Sino Petroleum Corp. to conduct oil exploration in the disputed Spratly Islands in the West Philippine Sea.

Trade Undersecretary Cristino Panlilio said this was part of the $2-billion to $7-billion investment package the Philippine contingent was expected to get during the state visit of President Aquino to China next week.

Although the details were not yet firmed up, Lacierda said “it’s a good sign” since “it shows that both sides continue to dialogue, notwithstanding the some disagreements.”

Lacierda echoed the statements of Foreign Affairs Secretary Albert del Rosario in saying the West Philippine Sea was not the sum total of the country’s relations with China, as these have always been multifaceted.

“It shows that one of the facets of our relationship is the trade aspect,” Lacierda said.

He added the discussion on the oil exploration would only be on the ministerial level since it had been made clear that the Philippines and China had agreed to disagree on the issue and discuss it on a multilateral level.

“We have differences but we can move forward beyond those differences,” Lacierda said.

Lacierda said Del Rosario had also stated that “we know what is ours, we know what is disputed so I think any time we’re going to discuss exploratory talks with other countries, we will have to bear in mind which is ours and which is disputed.”

“And because of that, we have certain levels of treatment, when (the area) is ours and when it’s disputed,” Lacierda said.

Panlilio, the overall program head for the business sector for the state visit, said Sino Petroleum was prepared to invest over $1 billion for oil exploration only.

The Chinese firm is looking for a local partner and is considering Oriental Petroleum, Basic, Petron and Philippine National Oil Co.

Panlilio said they did not expect any problems with the Spratlys operations because Sino Petroleum has already agreed to conduct the oil exploration “under Philippine laws.”

This is not the first time that the Philippine and Chinese governments forged an oil exploration agreement. The first was the controversial survey agreement at the Recto (Reed) Bank, which is part of Philippine territory near the Spratlys. The accord was forged during the term of former President Gloria Macapagal-Arroyo.

Panlilio said a top official of Sino Petroleum would meet Aquino during the state visit.

Energy Secretary Jose Rene Almendras would sign the agreement on behalf of the government.