Cusi clarifies PHL-China oil deal ‘not an exploration yet’

The memorandum of understanding signed by China and the Philippines during Chinese President Xi Jinping’s state visit this week is a mere joint consensus on cooperation in finding ways to explore resources in the disputed West Philippine Sea, Energy Secretary Alfonso Cusi on Thursday.

Criticisms and concerns have been raised on the lack of transparency regarding the MOU amid speculation that a draft framework agreement on the proposed joint exploration deal in the disputed South China Sea was actually prepared solely by Beijing.

“There’s no joint exploration yet. Wala pa ... That is an MOU. That is a memorandum of cooperation to explore ways on how we can harness the indigenous resources in West Philippine Sea. Pero wala pa po ... dahil pag-uusapan pa po kung paano,” Cusi said in a press conference in Taguig City.

Philippine and Chinese officials signed on Tuesday a memorandum of understanding covering oil and gas development. 

What was signed was just a step “to move forward” the discussions to resolve issues on how to explore, exploit, and develop indigenous resources in the disputed waters, Cusi said.

China and the Philippines have one year from the date of signing to come up with ways on how to explore the area.

The MOU does not provide any specific detail on profit-sharing.

“Wala pa ... On the sharing nagkukuwan pa ng sharing 'yun. Sinasabi the 60-40 sharing but that is an indicative ... not an agreed sharing,” he said.

A 2010 study by the US Geological Survey showed a 95 percent chance that the South China Sea platform contains at least 750 million barrels of oil with a median chance of around 2 billion barrels, and a low probability of over 5 billion barrels. 

In May 2016, Forbes Asia noted that a China National Offshore Oil Company (CNOOC) estimate placed potential reserves at 125 billion barrels of oil and 500 trillion cubic feet of gas in undiscovered areas. The figures have not been confirmed by independent studies.

Foreign Affairs Secretary Teodoro Locsin Jr. earlier said that the Philippines “lose nothing and gain everything” when it comes to the MOU.

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

Presidential spokesperson Salvador Panelo made it clear on Tuesday that there was nothing for the Duterte administration to disclose regarding a joint oil exploration because there is no real deal yet regarding the matter.

“Any demand for a release of documents pertaining thereto at this time, however, is premature and could be prejudicial to our country's interests given that parties have yet to ink any agreement on the matter,” the Palace official said.

Vice President Leni Robredo and some lawmakers have urged the Duterte administration to make public the details of the contracts as they expressed concern that a loan agreement could put the country in a debt trap. —VDS, GMA News