By Genalyn Kabiling The government committed no treason when it forged a pact with China to negotiate a possible oil and gas exploration in the future, Malacañang asserted on Monday. Presidential Spokesman Salvador Panelo
(OPS / MANILA BULLETIN) Presidential Spokesman Salvador Panelo dismissed the allegation made by communist leader Jose Maria Sison against the government as the Palace finally released a copy of "Memorandum of Understanding on Cooperation on Oil and Gas Development between the Philippines and China" amid calls for transparency. Under the deal signed last week, the two governments agreed "to negotiate on an accelerated basis arrangements to facilitate oil and gas exploration and exploitation in relevant maritime areas consistent with applicable rules of international law." An inter-governmental joint steering committee, represented by both countries, will be established to negotiate the cooperation agreement and maritime areas for oil and gas exploration. The three-page document stated that the two sides aim to complete the energy deal within 12 months. "It's just an agreement to agree on certain things. There is nothing there that will be a basis for any allegation of treason. Even the critics say there is nothing there,” Panelo said during a Palace press briefing. Panelo argued that the MOU would be the "framework" for the negotiations on a possible oil development cooperation between the Philippines and China. He assured the public that the government would ensure any oil exploration deal would be constitutional and beneficial to the nation. “It will be the basis of negotiations, talking points, and then after that there will be an agreement between the two countries,” he said. "It will start from those who assigned to initially make some talks then it will reach another level until it reaches (Foreign Affairs) Secretary (Teodoro) Locsin. That's the time to say anything whether for or against any agreement," he added. Sison, founding chairman of the Communist Party of the Philippines, earlier alleged that the latest oil and gas exploration deal signed by the two counties was a "clear act of treason" on the part of President Duterte. Sison, in a statement last weekend, said the MOU was also "a blatant betrayal of the sovereign rights and national patrimony of the Philippines and the Filipino people.” As other groups expressed concern about the country’s oil agreement with China, Panelo insisted that the government would not allow the country to be on the losing end in any joint oil exploration deal. He also assured that joint exploration of natural resources in the country was allowed as long as the constitutional limits such as the 60-40 sharing agreement in favor of Filipinos, are followed. "Ang palaging position natin ay 'Is this beneficial to us?' 'Is this constitutionally allowable? 'Yan ang palaging tanong. We cannot go beyond that," he said. In negotiating an oil exploration deal, the two countries recognized that through dialogue and cooperation, they have made "substantial progress and meaningful gains in exploring opportunities and means to cooperate with each other in maritime activities" that contribute to peace and stability in the region. The memorandum also mentioned the Charter of the United Nations, the 1982 UN Convention on the Law of the Sea, and the 2002 Declaration on the Conduct of Parties in the South China Sea. Under the MOU, the new committee will be co-chaired by the Foreign Ministries and co-vice chaired by the energy ministries with participation of relevant agencies. It will comprise an equal number of members nominated by the two governments. "The committee will be responsible for negotiating and agreeing the cooperation agreements and the maritime areas to which they will apply (hereinafter referred to as the 'cooperation area'), and deciding the number of Working Groups to be established and for which part of the cooperation area each Working Group is established," it read. The two sides would also create or more "Inter-Entrepreneurial Working Group" that will negotiate and agree on technical and commercial arrangements that will apply in the relevant working area. China has also authorized the China National Offshore Corporation as the Chinese enterprise for each working group. The Philippines, on the other hand, will authorize the enterprise that has entered into a service contract with the Philippines with respect to the applicable working area. If there is no such entity for such area, the Philippine National Oil Company-Exploration Corporation (PNOC-EC) will be assigned as the Philippine enterprise for the relevant working group. "The two governments will endeavour to agree on the cooperation agreements within twelve (12) months of this Memorandum of Understanding. The Committee and each Working Group will meet regularly to discharge their respective functions," the MOU read. It also stated that the MOU and all other discussions, negotiations and activities of the two governments or their authorized enterprises would be "without prejudice to the respective legal positions of both governments." "This Memorandum of Understanding does not create rights or obligations under international or domestic law," it added. The MOU also invoked confidentiality in the information shared by the two governments on the matter.