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Tag: Reed Bank

Most important documents in Duterte’s 5th China visit unlisted

Bilateral meeting between Philippine and Chinese officials led by President Duterte and President Xi Jinping at the Diaoyutai State Guesthouse in Beijing on August 29, 2019. Malacanang photo by Robinson Ninal.

The most important documents that were exchanged between the Philippines and China during last week’s visit of President Duterte to China were not included in the list of agreements signed that was released by Malacañang to media.

The documents were the list of names that will constitute the Inter-governmental steering committee that would supervise the joint exploration between the Philippines and China in the West Philippine Sea.

CNN Philippines was able to get the document submitted by China. CNN PH said “A highly-placed source gave CNN Philippines a document showing seven members from the Chinese side, to be led by Vice Foreign Minister Luo Zhaohui as co-chair and Vice Minister Li Fanrong of the National Energy Administration as co-vice chair. The other members are:

Composition of joint exploration working group expected during Xi-Duterte meeting

President Duterte welcomes China’s President Xi Jinping in Malacanang in November 2018.

The PH-China Memorandum of Understanding on Cooperation on Oil and Gas Development, considered a breakthrough in the jagged relationship of the Philippines and China, is expected to move forward when the two governments submit the names who will compose the Working Group during the bilateral meeting of President Duterte and Chinese President Xi Jinping in China on Thursday.

The exchange of names of members of the Working Group is provided for in the Terms of Reference (TOR) on Inter-Governmental Joint Steering Committee and Inter-Entrepreneurial Working Group between the Philippines and China which was signed by Foreign Secretary Teodoro Locsin Jr. and China’s Foreign Minister Wang Yi three weeks ago.

The Working group will negotiate and agree on” inter-entrepreneurial commercial and technical arrangements” that will be conducted in the area of the joint exploration that will be undertaken jointly by the Philippines and China in Philippine waters.

A test in finding sanity amid Duterte’s incoherence

President Duterte talks about the sinking of Filipino fishing boat by Chinese vessel during during the 121st Philippine Navy Anniversary at the Naval Base Heracleo Alano in Cavite City on June 17, 2019. Malacañang photo by Simeon Celi, Jr.

President Duterte dismissed what happened in Reed Bank on June 9 where a Chinese fishing boat “Yuemaobinyu 42212” rammed a Philippine fishing boat, F/B Gimver 1 which threw the 22 Filipino fishermen into the waters in the darkness of the night until they were rescued by a Vietnamese fishing boat, as just a “maritime incident.”

“Banggaan lang ng barko ‘yan,”
Duterte said at the121ST anniversary of the Philippine at Sangley Sangley Point in Cavite City, Monday, finally breaking his eight-day silence that has riled up concerned citizens over what many perceive as his subservience to China.

Yet he also said he does not want to issue a statement “because there is no investigation and there is no result.”

I’m reproducing here portions of his speech about the incident. This is a test in finding sanity amid the incoherence:

Why is there a Chinese military vessel in Reed Bank?

Supreme Court Justice Antonio T. Carpio believes that it was not a collision of fishing vessels that happened on June 9 in Reed Bank (Philippine name: Recto Bank; Chinese name: Liyue Tan), 80 nautical miles off Palawan and within the Philippine Exclusive Economic Zone.
It was a Chinese militia ship ramming a Philippine fishing vessel.

“China’s maritime militia vessels have reinforced steel hulls purposely for ramming fishing vessels of other coastal states. No other coastal state has fishing vessels purposely designed for ramming other fishing vessels. Captains of ordinary Chinese fishing vessels do not engage in ramming for fear of inflicting damage to their own vessels. It is thus highly likely that a Chinese maritime militia vessel rammed the Filipino fishing vessel F/B Gimver 1,” Carpio said in a statement.

The statement from Chinese Embassy in Manila insisted that it was “a Chinese fishing boat from Guangdong Province, China” and identified it as “Yuemaobinyu 42212.”

Finding ways to circumvent charter for joint exploration with China

Pres. Duterte and China Pres. Xi Jinping in Beijing Oct. 2016 state visit.

We will be watching out for the details of the agreement on the joint exploration in the Spratlys that is expected to be signed in the presence of President Duterte and Chinese President Xi Jinping when the latter comes to Manila on Nov. 20 and 21. If there would be any agreement on joint exploration at all.

Duterte and his foreign secretaries, present and past, have assured us Philippine sovereignty will not be compromised. We would like to believe them but we are still concerned especially after the President surrendered to China the Philippine claim in the Spratlys with his statement in Singapore last Wednesday while attending the ASEAN summit.

In an doorstep interview, Duterte, talking about the three-year time frame for the China –ASEAN Code of Conduct for the South China Sea said, apparently referring to the regional military superpower :”You are there, you are in possession, you occupy it, tell us what route shall we take and what kind of behavior.”

Again, the risks of joint exploration in PH EEZ

A day after President Duterte talked about” joint exploration” and “co-ownership” with the Chinese last Feb. 28 in Marawi City, Presidential Spokesperson Harry Roque was with Karen Davila in ANC’s Headstart.

Presidential Spokesperson Harry Roque talks about joint exploration in PH EEZ with China in Headstart hosted by Karen Davila

Davila was following up this statement by Duterte: “Ngayon offer nila joint exploration, di parang co-ownership. Parang dalawa tayong may-ari niyan. Eh,di mas maganda,yan kaysa away. (Now their offer is joint exploration which is like co-ownership. It’s like both of us are owners. That good, better than fighting.)”

China’s concept of setting side sovereignty dispute for joint exploration of Spratlys

Asked during his press conference last Wednesday when the talks about the joint exploration in Philippine territory that is also being claimed by China and other countries started, Foreign Secretary Alan Peter Cayetano recalled the meeting of the late Deng Xiaoping with then President Corazon Aquino.

Meeting of China’s paramount leader Deng Xiaoping and Pres. Corazon Aquino in Beijing in April 1988. Photo from People’s Daily online

In that meeting, Deng suggested to set aside the issue of sovereignty on the Spratlys because that won’t be resolved in their lifetime. He suggested joint development.

Cayetano assured the public that the joint exploration they would be entering with the Chinese will not violate the Constitution and cited the Malampaya oil project in Palawan which is being operated by Shell, a British–Dutch multinational oil and gas company.

Chinese firm rejects MVP offer for share in PH project in Reed Bank

Phikex Petroleum President Manuel V. Pangilinan
Phikex Petroleum President Manuel V. Pangilinan
(First of two parts)

By Theresa Martelino-Reyes, VERA Files

A state-owned Chinese oil firm has rejected the proposal of business tycoon Manuel V. Pangilinan to invest in a contract to drill in the disputed Reed Bank but welcomed “innovative” proposals on how it can participate, according to a memorandum Pangilinan submitted to President Benigno Aquino.

State-owned China National Offshore Oil Corp. (CNOOC) turned down the offer made by Pangilinan, chairman and chief executive officer of Philex Petroleum Corp, in a meeting on May 2, 2012.

“A Farm-In Agreement into SC 72 (which Philex previously suggested to them) is not acceptable given the sovereignty issue,” Pangilinan reported to Aquino in an aide memoire submitted to the President on May 7, 2012. The contents of the aide memoire, obtained by VERA Files, have not been made public since it was submitted to the President.

SC 72 refers to Service Contract 72, signed in 2010, in which the Philippine government awarded Forum Energy Plc. (FEP) exploration rights to a basin within Reed Bank. Philex owns 64.45 percent of FEP, a London-based listed oil and gas exploration firm focused on the Philippines. FEP in turn owns 70 percent of SC 72.

A farm-in agreement is a contract signed between the owner of the “farm” and its exploration partner. Accepting such an arrangement could be interpreted as CNOOC accepting the Philippines as “owner” of Reed Bank.