Author Topic: Offshore oil: The way forward  (Read 10114 times)

adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #15 on: May 27, 2018, 05:49:12 PM »
In light of the following statement, the PH government acknowledges that no deal with China in disputed waters can proceed without a proper treaty.

However, Roque said the same does not apply to SC 72 as there is an ongoing dispute in the said area between the Philippines and China.

SC 72 was awarded to Sterling Energy Ltd in June 2002. It is located in the West Philippine Sea, west of Palawan Island and southwest of the Shell-operated Malampaya Gas Field. SC 72 covers 8,800 square kilometers.

As to [SC] 72, the agreement on joint exploration will be governed by international law because there has to be a treaty to be signed between the Philippines and China first on the joint exploration before it can be implemented by juridical entities of the contracting states,” Roque said.

“That’s why if we enter into an agreement, we’ll have to spell out the respective rights and obligations of the parties by way of a compromise,” he added.

< Edited >

As per the constitution, a treaty cannot be implemented without approval of two-thirds of the Senate

http://www.officialgazette.gov.ph/constitutions/1987-constitution/

Quote
SECTION 21. No treaty or international agreement shall be valid and effective unless concurred in by at least two-thirds of all the Members of the Senate.


====

Whatever treaty is crafted, it can find some inspiration from the Arctic Treaty

Interesting idea.

There is one other place on this planet besides the South China Sea where there are multiple overlapping claims by several nations.

And for almost 60 years there has been a treaty in place which gets all the claimants to set aside their sovereignty issues so that everyone can use that place peacefully.

That place is Antarctica.

Don't know if it would work. But it is interesting.

https://www.odt.co.nz/news/dunedin/antarctic-treaty-model-south-china-sea

Quote
Antarctic Treaty model for South China Sea

By John Gibb

Rising international tensions over disputed areas in the South China Sea could be reduced by nations taking a leaf out of the Antarctic Treaty approach.

That comment was made recently in Dunedin by Sir Kenneth Keith (78), a judge who was the first New Zealander elected to the International Court of Justice (ICJ) in its 70-year history.

Sir Kenneth commented in an interview, after giving a University of Otago open lecture, which was part of a series of talks organised by the university’s National Centre for Peace and Conflict Studies.

The talk was devoted to "World Peace through World Law: the role of the ICJ and other international courts and tribunals".

An arbitral tribunal of the Permanent Court of Arbitration in The Hague concluded in July  China had no legal basis to claim "historic rights" to some disputed areas in the South China Sea.

Sir Kenneth emphasised that this tribunal outcome was not the end, but should be only the beginning of continuing dialogue among nations involved with the South China Sea.

"They have to go on living with one another."

The United Nations Charter required nations to settle their international disputes by peaceful means, and the Association of Southeast Asian Nations (Asean) Charter also emphasised international co-operation and peaceful resolution of disputes.

New Zealand itself had complex interests in the area, given that China was a major destination for our exports, and also that many of our overall exports were also shipped through the South China Sea.

The territorial disputes involve claims by several countries, including Vietnam, the Philippines and China.

Access to oil, natural gas, minerals and fishing resources are also key factors.

Sir Kenneth said that the Antarctic Treaty model had long proved successful, and many countries, including New Zealand, undertook research in the Antarctic, but the area was demilitarised, and ownership issues had been put to one side.

Sir Kenneth, of Wellington, was one of the 15 judges on the ICJ between 2006 and 2015.

He was earlier a judge of the New Zealand Court of Appeal and Supreme Court.

Comparisons

 
Competing claims in the Antarctic  Competing claims in the SCS / WPS

adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #16 on: June 07, 2018, 01:49:50 PM »
Vietnam opted to go its own way and and ignore the Chinese claim . . .  but lacked the will to see the strategy through. It now stands as a reminder of the challenges for the "way forward".

Spain suffered first . . .

South China Sea: Vietnam halts drilling after 'China threats'
By Bill Hayton
BBC News
24 July 2017

http://www.bbc.com/news/world-asia-40701121

Vietnam has reportedly terminated a gas-drilling expedition in a disputed area of the South China Sea, following strong threats from China.
A source in the south-east Asian oil industry has told the BBC that the company behind the drilling, Repsol of Spain, was ordered to leave the area.
It comes only days after it had confirmed the existence of a major gas field.

Those reports have been corroborated by a Vietnamese diplomatic source.

According to the industry source, Repsol executives were told last week by the government in Hanoi that China had threatened to attack Vietnamese bases in the Spratly Islands if the drilling did not stop.

< Edited >

. . . now even Russia is worried.

Rosneft says South China Sea drilling is within Vietnam waters
Reuters Staff

https://www.reuters.com/article/rosneft-vietnam-southchinasea/rosneft-says-south-china-sea-drilling-is-within-vietnam-waters-idUSL3N1SO39Z

HANOI, May 17 (Reuters) - Drilling in the South China Sea by Rosneft is within Vietnamese territorial waters, the Russian state oil firm said in a statement on Thursday, two days after its Vietnamese subsidiary began drilling in Vietnamese waters claimed by China.

Rosneft’s local unit, Rosneft Vietnam BV, is concerned that its recent drilling in an area of the South China Sea that falls within China’s “nine-dash line” could upset Beijing, two sources with direct knowledge of the situation told Reuters on Wednesday.

“Offshore license areas of Rosneft on the South China Sea are situated within the territorial waters of Vietnam,” Rosneft said in its statement.

< Edited >



======


EXCLUSIVE-Vietnam unit of Russia's Rosneft fears Beijing backlash over South China Sea drilling
By James Pearson
Reuters

https://www.compuserve.com/politics/story/0002/20180517/M1L3N1SN56V_1735131997

* Rosneft announces drilling in Vietnam's Block 06.1 on Tuesday

* Block is in area outlined by China's nine-dash line-consultant

* That line lays claim to much of the South China Sea

* Vietnam previously halted project by Repsol in a nearby block

* Rosneft Vietnam did not want publicity for drilling-sources

HANOI, May 17 (Reuters) - Rosneft Vietnam BV, a unit of Russian state oil firm Rosneft, is concerned that its recent drilling in an area of the South China Sea that is claimed by China could upset Beijing, two sources with direct knowledge of the situation told Reuters on Wednesday.

Rosneft said on Tuesday its Vietnamese unit had started drilling at the LD-3P well, part of the Lan Do "Red Orchid" offshore gas field in Block 06.1, 370 kms (230 miles) southeast of Vietnam.

The block is "within the area outlined by China's nine-dash line," according to energy consultancy and research firm Wood Mackenzie.

< Edited >

In March, Vietnam halted an oil drilling project in the nearby "Red Emperor" block following pressure from China, sources told Reuters.

< Edited >

Fearing repercussions and pressure from China, Rosneft Vietnam had wanted to begin drilling with as little attention as possible, despite the statement by its parent company on Tuesday, the sources said.

< Edited >

The drilling is significant for Vietnam, which has been struggling to maintain its crude oil and gas output amid already declining production from its key fields and the continuing pressure from China in the disputed waters.

In April, Vietnam's state oil firm PetroVietnam said that maritime tensions with China will hurt its offshore exploration and production activities this year.

< Edited >


adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #17 on: August 09, 2018, 11:19:23 AM »
PRRD okays TWG on PH-China joint exploration
By Joyce Ann L. Rocamora  August 7, 2018, 6:07 pm

http://www.pna.gov.ph/articles/1044041

MANILA-- President Rodrigo Duterte has approved the establishment of a technical working group (TWG) on the Philippines-China joint exploration in the disputed West Philippine Sea, Foreign Affairs Secretary Alan Peter Cayetano said Tuesday.

"I just got his approval in principle, but I can tell you that the areas where I want to have experts at the highest level, meaning we have Cabinet level," he told a press briefing in Taguig City.

For the environment, Cayetano said the TWG will have representatives from the Department of Environment and Natural Resources; for oil and gas, the Department of Energy; for security, the Department of National Defense, National Security Council, National Intelligence Coordinating Agency and the Department of the Interior and Local Government.

There will also be a legal team, composed of the Department of Justice and the Office of the Solicitor General to advise and help in the negotiation stage.

"In our arbitration award, we had a team, there's a legal team. In this case, it's not a legal team that's going to file a case, but a legal team that's going to advise us and help us negotiate," he said.

The legal team will focus on three components -- on oil and gas, on Constitutional law, and on the United Nations Convention on the Law of the Sea.

Cayetano also disclosed that the Chinese side is ready with its own technical working group.

"I'll let them make their own announcements. But as soon as both sides have working groups, at least we can talk. I'm not sure if we can agree but at least we can start talking."

Cayetano said the timeline is still "as soon as possible."

With the creation of working groups on both sides, he said they are hoping to finish the draft framework by September 2018.

"I am even more optimistic that we can come up with something by September. I've always told you it can happen tomorrow, it can happen in a year, but why are we rushing? Because Malampaya will run out in 2024," Cayetano said.

Cayetano maintained that any deal on the joint exploration talks will be in favor of the Philippines, which may be equal to the 60-40 Malampaya sharing or even better.

"Malampaya is structured on 60-40 but we're negotiating for better than that," he said.

Cayetano clarified that same as China, the Philippines also has an "indisputable claim" in the strategic waters.

But opting for a joint exploration talks instead of settling the territorial dispute first does not necessarily mean giving up the country's sovereign rights in the region, he said.

"We also have indisputable sovereignty over our territory which is defined by the Philippine Constitution, and we also have indisputable claims under the UNCLOS. But again, where do we take it from there?"

He said if the country is to wait for a decision on territory, "it might take forever."

"For us to come to some agreement, which is the same with the Code of Conduct in the South China Sea, we have to put aside territorial and sovereign rights claims but not abandon them," Cayetano said. (PNA)


PH, China to work out how to tap oil, gas that both sides claim
Published February 14, 2018, 2:42 PM
By Reuters

https://news.mb.com.ph/2018/02/14/ph-china-to-work-out-how-to-tap-oil-gas-that-both-sides-claim/

The Philippines and China have agreed to set up a special panel to work out how they can jointly explore oil and gas in part of the South China Sea that both sides lay claim without having to address the explosive issue of sovereignty.

China claims most of the South China Sea, where $3 billion in sea-borne trade pass every year, and has competing claims in various parts of it with Brunei, Malaysia, Taiwan, Vietnam and the Philippines.

“It’s just the start of a process,” Philippine ambassador to China, Chito Sta. Romana, told reporters late on Tuesday after diplomats from both sides met for the second time under a bilateral mechanism aimed at defusing longstanding maritime tensions.

He said the decision to form a working group on cooperating on energy was a “breakthrough”.

Forming an agreement for a joint project would be extremely complex and sensitive as both countries claim jurisdiction of the site of the oil and gas reserves, so sharing them could be deemed legitimizing the other side’s claim, or even ceding sovereign territory.

The idea of joint development was first hatched in 1986, but disputes and the sovereignty issue have stopped it from materializing.

But time is of the essence for the Philippines, which relies heavily on energy imports to fuel its fast-growing economy. That is complicated by estimates that its only domestic natural gas source, the offshore Malampaya field, will be depleted by 2024.

< Edited >

adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #18 on: November 24, 2018, 12:02:58 AM »
Locsin reveals China, PHL oil, gas M.O.U. text
By Recto Mercene - November 23, 2018

https://businessmirror.com.ph/locsin-reveals-china-phl-oil-gas-m-o-u-text/
   
THE Philippines and China failed to arrive at a firm agreement to start joint exploration anytime soon in parts of the South China Sea (SCS), but are keeping their options open to “possible energy cooperation” under a memorandum of understanding (MOU) signed on Tuesday during the visit of President Xi Jinping to Manila, Foreign Affairs Secretary Teodoro L. Locsin Jr. said.

Locsin read aloud in a television interview on Thursday some parts of the Philippines-China MOU on Oil and Gas Development, which topped 29 documents signed during Xi’s historic visit. The government had been asked by some quarters to reveal the full text of the oil-gas MOU immediately, amid growing anxiety over China’s real design, considering its rejection of a 2016 ruling by a United Nations tribunal invalidating its “nine-dash line” claim where it bases its claim over nearly 90 percent of the SCS.

According to Locsin, the deal signed during the state visit of Chinese leader Xi “merely seeks to study and discuss the prospects of a possible energy cooperation between the two countries.”

< Edited >

adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #19 on: November 26, 2018, 09:02:08 AM »
MOU on oil development recognizes Philippine sovereign rights, Carpio says
Ellen Tordesillas (Vera Files) - November 25, 2018 - 10:19am

MANILA, Philippines — Acting Chief Justice Antonio Carpio said Friday China could be recognizing the sovereign rights of the Philippines in the disputed waters of the South China Sea covered in the recently-signed Philippines-China Memorandum of Agreement on Cooperation on Oil and Gas Development through service contracting arrangements as provided in the MOU.
 
Answering a question on the vagueness of the MOU signed by Foreign Secretary Teodoro Locsin Jr. and Chinese Foreign Minister Wang Yi during the state visit of Chinese President Xi Jinping last week, he took note of this portion of the MOU:

"China authorizes China National Oil Corporation (CNOOC) to be the Chinese enterprise for each Working Group. The Philippines will authorize the enterprise (s) that has/ have entered into a service contract with the Philippines with respect to the applicable working area or, if there is no such enterprise for a particular working area, the Philippine National Oil Company –Exploration Corporation (PNOC-EC) as the Philippine enterprise(s) for the relevant working group."

China as service contractor

"So there's a recognition of service contracting by the Philippines. The way I interpret the MOU is that this is a cooperation by the Philippines with China on oil and gas activities through service contractors," Carpio said during a forum on "Maritime Disputes in the South China Sea-Navigating the Diplomatic Waters,"  organized by the Konrad Adenauer Stiftung and the Rizalino S. Navarro Policy Center for Competitiveness at the Diamond Residences in Makati.


"So China comes in by being a contractor of our service contractor or taking equity position in our service contractor or both. So China will come in through service contractors. That's my interpretation," he also said.

< Edited >


Read more at https://www.philstar.com/headlines/2018/11/25/1871600/mou-oil-development-recognizes-philippine-sovereign-rights-carpio-says?fbclid=IwAR335cRtzUme3UTj9T6IPaHqK7QPEEvclP3quYIyylAgCjQTZCVl3vMkIhk#q8P1CIdacAGrqW3L.99


adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #21 on: September 01, 2019, 04:41:04 PM »
Sotto: Joint oil exploration with China affirms PH sovereignty
By: Leila B. Salaverria - Reporter / @LeilasINQ Philippine Daily Inquirer / 06:05 AM September 01, 2019

MANILA, Philippines — Senate President Vicente Sotto III said the proposed joint exploration of the West Philippine Sea (WPS) being forged between Manila and Beijing would be advantageous to the Philippines, as this would boost its claim over the area and also earn a bigger share for the country.

“It’s a veiled acceptance that we own the [West Philippine Sea],” the Senate leader said in a text message when sought for comment about the proposed joint exploration within the Philippines’ exclusive economic zone.

< Edited >


MANILA, Philippines — Senate President Vicente Sotto III said the proposed joint exploration of the West Philippine Sea (WPS) being forged between Manila and Beijing would be advantageous to the Philippines, as this would boost its claim over the area and also earn a bigger share for the country.

“It’s a veiled acceptance that we own the [West Philippine Sea],” the Senate leader said in a text message when sought for comment about the proposed joint exploration within the Philippines’ exclusive economic zone.

“It conforms with our constitutional mandate of ownership,” he added.


60-40 split

Sotto said the agreement would have a 60-40 split, with the bigger share from this joint enterprise going to the Philippines.

President Rodrigo Duterte is in China and progress is expected on the negotiations for the joint oil and gas exploration agreement between the two countries.

< Edited >

Read more: https://globalnation.inquirer.net/179576/sotto-joint-oil-exploration-with-china-affirms-ph-sovereignty#ixzz5yGEX0aR7
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

adroth

  • Administrator
  • Boffin
  • *****
  • Posts: 9790
    • View Profile
    • The ADROTH Project
Re: Offshore oil: The way forward
« Reply #22 on: October 29, 2019, 02:47:59 PM »
China ‘not threatening war’ vs PH; ‘we’re almost there’ — Locsin
By: Christia Marie Ramos - Reporter / @CMRamosINQINQUIRER.net / 10:36 AM October 29, 2019

< Edited >

In a Twitter post, the foreign affairs chief said that the oil and gas deal between the two nations “spares either from conceding sovereign claims.”

< Edited >

He said that China “sees no problem doing it explicitly under Philippine law” when it comes to undisputed areas covered by the PH-China joint oil and gas exploration agreement.

“In disputed areas under my MOU (memorandum of understanding) on Oil & Gas which spares either from conceding sovereign claims,” Locsin further said.

During President Rodrigo Duterte’s fifth visit to China in August, the Philippines and China agreed to form groups that would finalize the possible agreements on the joint oil and gas exploration in specific areas in the West Philippine Sea.

< Edited >

Locsin had earlier said that under the joint oil and gas exploration memorandum of agreement, “no legal position of either side is compromised when you enter into this agreement.” /je



Read more: https://globalnation.inquirer.net/181626/china-not-threatening-war-vs-ph-were-almost-there-locsin#ixzz63iuYp5Wh
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook