‘PH could get more in joint exploration deal’
Credit to Author: Catherine S. Valente, TMT| Date: Fri, 25 Oct 2019 16:51:42 +0000
The Philippines could get more than a 60-percent share in the joint oil exploration deal that will be funded mostly by China, President Rodrigo Duterte’s security adviser said on Friday.
National Security Adviser Hermogenes Esperon Jr. said the proposed 60-40 sharing of possible oil resources in the West Philippine (South China) Sea between the Philippines and China was not yet final.
“60-40 is a desirable sharing, but it is not final. It could even go up to 61 or more,” he told reporters.
“Well 1 percent is always substantial when you take about such big investments,” he added.
Palace spokesman Salvador Panelo earlier said the offer of a 60-40 split, with the Philippines getting the larger share, came from China.
Duterte had said a 60-40 sharing scheme is acceptable.
Esperon said this arrangement was “more than fair” since China would pay for the exploration.
“That’s the net because they spend for all construction and all other things,” the Cabinet official said.
“They’re spending for it and we’re getting more. More than fair right?” he added, noting that the 60-40 sharing deal was also used in the Malampaya gas field.
“We will have to get into the details… You will know after the talks,” said Esperon, who is part of the five-man steering committee from the Philippines.
The Philippines and China signed a memorandum of understanding (MoU) last year for joint oil and gas development in the West Philippine Sea.
The MoU was signed amid China’s refusal to budge from its claim of ownership over the disputed sea, including areas within the Philippines’ exclusive economic zone.