PHL, China ink MOU on oil, gas cooperation

The Philippines and China on Tuesday inked a memorandum of understanding on cooperation on oil and gas development during the state visit of Chinese President Xi Jinping in Manila.

Details of the MOU have yet to be released by the Palace, but it was signed amid speculation that a draft framework agreement on the proposed joint exploration deal in the disputed South China Sea had been prepared by Beijing.

Energy Secretary Alfonso Cusi later revealed that the deal was meant to find a "solution [on] how we can enjoy the resources" in the South China Sea. He did not state the exact location.

Foreign Affairs Secretary Teodoro Locsin Jr. and Chinese Foreign Minister Wang Yi exchanged copies of the MOU on cooperation on oil and gas development in a simple ceremony in Malacañang, witnessed by President Rodrigo Duterte and Xi.

The MOU was among the 29 agreements signed by both countries covering the fields of trade and investment, banking and finance, infrastructure, agriculture, education, culture, and people-to-people exchanges, among others.

The list of deals is as follows:

• memorandum of understanding on cooperation on the Belt and Road Initiative
• memorandum of understanding on cooperation on oil and gas development
• memorandum of understanding between the Foreign Service Institute of the Philippines and the China Foreign Affairs University of the People's Republic of China
• exchange of executive program for the cultural agreement between Philippine government and Chinese government for 2019 to 2023
• memorandum of understanding on basic education cooperation between the Philippine government and Chinese education ministry
• memorandum of understanding between the Philippines' Department of Information and Communications Technology and Ministry of Industry and Information Technology of China
• memorandum of understanding between the Philippines' Cooperative Development Authority and Ministry of Agriculture and Rural Affairs of People's Republic of China on strengthening the building of agricultural cooperatives
• exchange of infrastructure cooperation program between the Philippines and China
• exchange of program for cooperation on industrial parks development between the Philippines and China
• memorandum of understanding on jointly promoting the cooperation in key infrastructure projects in Davao region between the Philippines' Department of Finance and Ministry of Commerce of China
• handover of certificate of emergency humanitarian cash assistance between the governments of Philippines and China
• implementation agreement of the feasibility study for Davao City Expressway project
• implementation agreement of feasibility study for Panay-Guimaras-Negros islands bridges project
• memorandum of understanding on Renminbi clearing arrangement
• exchange of protocol for phytosanitary requirements for export of fresh young coconuts from the Philippines to China between the Philippines' Department of Agriculture and the General Administration of Customs of People's Republic of China
• protocol of sanitary and phytosanitary requirements for export of frozen fruits from the Philippines to China between Philippines Departments of Agriculture and Health and the General Administration of Customs of China
• exchange of agreement on economic and technical cooperation between the governments of the Philippines and China
• memorandum of understanding on supporting feasibility study of major projects between the Philippines' Department of Finance and China International Development Cooperation Agency of the People's Republic of China
• exchange of letters between the Philippines' Bureau of Customs and China International Development Cooperation Agency on the project of container inspection equipment
• exchange of letters between the Philippines' Department of Public Works and Highways and China International Development Cooperation Agency on the Davao River Bridge Bucana Project
• exchange of letters between Philippines' Task Force Bangon Marawi and China International Development Cooperation Agency  for China aid bridge and road project in Marawi
• memorandum of understanding on Panda Bonds issuance
• exchange of loan agreement between the Philippines' Metropolitan Waterworks and Sewerage System and Export-Import Bank of China on New Centennial Water Source-Kaliwa Dam Project
• exchange of commercial contract between the Philippines' Department of the Interior and Local Government and China Telecom Corporation Limited on Safe Philippines Project Phase 1
• exchange of commercial contract between the Philippines' Metropolitan Waterworks and Sewerage System and China Energy Engineering Corporation on New Centennial Water Source-Kaliwa Dam Project
• exchange of framework agreement for industrial park between the Philippines' Bases Conversion and Development Authority and China Energy Engineering Corporation
• exchange of contract between the Philippines' Department of Transportation and China Railway Design Corporation Limited for the project management consultancy of the Philippine National Railways South Long Haul Project-North-South Railway Project
• handover of letter of no objection to the organization of Renminbi-Philippine peso foreign exchange trading market
• handover of certificate of authority to operate for the Industrial and Commercial Bank of China Limited Manila branch

Before the exchange of deals, Xi and Duterte took part in an expanded bilateral meeting.

According to Duterte, both countries discussed China’s participation in infrastructure projects under the ambitious Build Build Build program, cooperation on the reconstruction and rehabilitation of Marawi, and the Philippines’ participation in China’s Belt and Road Initiative.

Xi's Belt and Road Initiative, unveiled in 2013, aims to bolster a sprawling network of land and sea links with Southeast Asia, Central Asia, the Middle East, Europe and Africa.

China pledged $126 billion for the plan, but has failed to overcome suspicion in Western capitals, where officials suspect the professed desire to spread prosperity in the region is foremost an attempt to assert Chinese influence.

Xi, meanwhile, said he invited Duterte to attend the second Belt and Road Forum for International Cooperation in China to "discuss China-Philippines cooperation." Duterte participated in the inaugural forum held in Beijing last year.

Also discussed during the expanded bilateral meeting were mutual concerns on defense, security, maritime cooperation, law enforcement, transnational crime, as well as strengthening our partnership in combating the trafficking of illegal drugs.

The two countries also touched cooperation in enhancing two-way tourism, agriculture, education, science and technology, and cultural exchanges.

Duterte also thanked the Chinese government for its "generous" assistance during calamities, such as the recent Typhoon Ompong.

"With mutual respect, sincerity, and adherence to sovereign equality, I will continue to work closely with President Xi to deepen the relationship between our great countries so we may together secure a peaceful and prosperous future for both our peoples and for the entire region," Duterte said in his remarks during the joint press conference. — NB/BM, GMA News