China threatening Phl anew over oil-rich Recto Bank

China is war-mongering again over the Philippines’ oil-rich Recto Bank. President Duterte said Monday a Chinese source warned him of military deployment if the Philippines secures the shallow waters within its exclusive economic zone. Fears are that Beijing would take advantage of world distraction by the Ukraine crisis to aggress the West Philippine Sea.

“Pinaalala sa akin, hindi ko na sabihin kung sino from China, ‘di ba may usapan tayo na joint development of Recto Bank. May bagong istorya na may papalit na,” Duterte revealed in a late night monologue.

Duterte said he denied his contact’s claim that Manila was sending soldiers to the area 84 miles off Palawan. “Sabi ko sa kanya, wala naman kami balak magdala ng sundalo. [The person retorted] kung magpadala kayo ng sundalo, magpadala rin kami ng sundalo. ‘Yan ang iniiwasan ko noon pa. Tapos magkakagiyera tayo rito... ‘yung Ukraine. ‘Yung Taiwan gusto agawin ulit ng China. Tapos dito.”

Recto Bank is estimated to contain 165 million barrels of oil and 3,486 billion cubic feet of gas. The Philippines has issued service contracts for private firms to drill petroleum. But Chinese warships harassed the exploration vessels in 2012.

Though well outside its own 200-mile EEZ, Beijing covets Recto by sketchy historical right. The Hague Arbitral Court in 2016 rubbished that claim as inconsistent with the UN Convention on the Law of the Sea. It upheld Manila’s stake over all mineral resources in its EEZ.

After a 2017 state visit to Beijing, Duterte reported that President Xi Jinping threatened him with war if he tried to enforce The Hague ruling and drill for oil. That was despite his earlier pronouncement to set aside the verdict in acquiescence to China. Retired Supreme Court justice Antonio Carpio, who had helped craft the Philippine arbitration, reminded that international law forbids any state from threatening or warring with another.

The following year Malacañang announced an understanding with Beijing to jointly explore and develop Recto Bank. State-owned China National Offshore Oil Company was to participate. Other details have yet to be publicized four years hence. International analysts said Manila negotiated under armed threat from Beijing.

Last Monday Duterte said: “So many flashpoints... We do not need it. Hindi natin kailangan makipag-away diyan, sundin lang ninyo kung anong pinag-usapan noon. It’s a matter of honor, consensual talk tapos may written agreement.” He said he would stand by joint exploration till the end of his term.

More than word of honor are constitutional mandates.The State owns all resources within its territorial waters and maritime jurisdiction. Foreigners may join mineral extraction only as financial or technical partners. The sanctity of contracts must be upheld, more so if issued by the State.

Also on Monday, former foreign secretary Albert del Rosario urged the government to commence “development and extraction from Recto Bank and other energy sources. The looming energy crisis in our country has been exacerbated not only because of the depleting reserves of the Malampaya gas field, but also inevitable global energy shortage resulting from the West’s sanctions on Russia.”

Fuel prices, already high from global economic recovery from the pandemic, further spiked due to Russia’s invasion of Ukraine. Fifty miles closer to shore from Recto Bank, Malampaya supplies more than 30 percent of Luzon’s electricity.

Controversy swirled when a newborn subsidiary of Udenna Corp. acquired the 45-percent operating share of giant Chevron and about to get Shell’s similar stake. Industry critics said the state’s PNOC-Exploration Corp. should have bought the shares instead, thereby earning what used to be Chevron and Shell’s P42 billion a year.

Petroleum assets are so important that the President by law must approve the service contractors and ownership changes. But Duterte justified the sale to Udenna as purely private deals. Udenna is owned by his biggest 2016 campaign contributor Dennis Uy.

Lawyer and senatorial candidate Alex Lacson linked the Recto issue to Malampaya. “Before entering into any exploration agreement with China on Recto Bank, government must first take back from Udenna the shares of Chevron and Shell. That way the people can benefit from the earnings.”

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