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Manila Bulletin devider Philippines devider National devider Padilla: PH-China should resume talks for joint oil-gas development in the WPS

Padilla: PH-China should resume talks for joint oil-gas development in the WPS

Published Jul 21, 2022 03:20 pm

Senator Robinhood C. Padilla on Thursday, July 21 sought a resumption of Philippine-China talks for cooperation on joint oil-gas development in the West Philippine Sea (WPS).

Padilla said the negotiation is needed to address the problems caused by skyrocketing prices of oil because of international developments such as the Russia-Ukraine conflict.

He stressed this in Senate Resolution No. 9, where he cited a Memorandum of Understanding on Cooperation on Oil and Gas Development between the Philippines and China on November 20, 2018.

"Now, therefore, be it resolved, as it is hereby resolved, urging President Ferdinand R. Marcos Jr. to resume the bilateral talks with the People's Republic of China (PRC) for the purposes of cooperation on oil and gas development in the West Philippine Sea," Padilla said in his resolution.

"The Philippines requires a long-term strategy to resolve its oil dependency from foreign sources as the country is vulnerable to the negative effect of the skyrocketing oil prices dictated by the world market's reaction to the Russia-Ukraine conflict," he added.

Padilla pointed out the Philippines and China understand that the memorandum of understanding (MOU) - which former Foreign Affairs Secretary Teodoro Locsin Jr. recently announced had been terminated - does not pose any derogation to the Philippines' assertion of its sovereign rights in the West Philippine Sea.

"The parties further understand that the MOU shall not be prejudicial to 'respective legal positions' which 'does not create rights or obligations under international or domestic law' and as such, there is no derogation of the Philippines' assertion of its sovereign rights in the West Philippine Sea," he said.

Also, he said the execution of the MOU is a "valid exercise of the executive powers of the President" under Sec. 1, Article VII of the Constitution.

Padilla added Section 2 Article XII of the Constitution allows the Philippines to "directly undertake to or enter into co-production, joint venture or production-sharing agreements on petroleum and other mineral oils and all forces of potential energy.”

"The new administration has the opportunity to resume the bilateral talks with the People's Republic of China for purposes of cooperation in the WPS on gas and oil development without bargaining the sovereign rights of the Philippines on the disputed territories therein," he pointed out.

"In view of the gains attained from the MOU where the GRP (Government of the Republic of the Philippines) and PRC cooperated on the terms provided therein on the gas and oil development in the WPS, the new administration can further explore these common interests of cooperation to resolve the country's oil dependency from foreign countries," he added.

Meanwhile, Padilla filed Senate Bill 229 seeking to suspend collection of excise taxes on unleaded premium gas, regular gas and diesel oil, to address the effects of rising oil prices.

Under the bill that seeks to amend Section 148 of the National Internal Revenue Code, the excise tax for these products will be automatically suspended if the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) will reach or exceed US$80 per barrel in three months.

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Philippines Robin Padilla West Philippine Sea china
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