UK company interested in exploration of disputed West Philippines Sea

Forum Energy Company (FEC) has made an expression of interest to the Palawan Council for Sustainable Development (PCSD) earlier this month to begin exploration for gas and oil in the disputed West Philippines Sea. The company, which boasts a number of projects in the Philippines, can already navigate 18 miles off the coast of Palawan, under the conditions set out in its Service Contracts 40 and 72. FEC presented its case to the directors of the PCSD at the Sangguniang Panlalawigan Session Hall on 2 August.

Governor of Palawan Jose Alvarez, who attended the presentation, reassured FEC that it would not restrict the company's efforts to explore further afield offshore Palawan, instead urging caution and care, particularly in relation to the natural environment, insisting that the PCSD would fully support pro-development projects on the condition that they were non-intrusive and benefitted the local community. Regarding the safety of the UK oil firm's employees in the waters of the highly disputed West Philippine Sea, Chief of Staff of the Western Command, Colonel Emmanuel Salamat, claimed that the strong Philippine military presence in the area would ensure the security of FEC's offshore operations.

China lays claim to, and has de facto control of, virtually the entire South China Sea, despite the claims of a total of six countries to maritime territory in the South China Sea. This horseshoe-shaped area, delineated by China's so-called “nine-dash line”, stretches over a vast area that Beijing claims historical rights to. Secretary of Foreign Affairs, Albert Del Rosario, argues that this territory encompasses not only the entire South China Sea but also violates Philippine rights to a Territorial Sea and Contiguous Zone, an EEZ and a continental shelf, as stipulated by UNCLOS.

Last year saw a standoff involving Chinese military ships and Philippine vessels after the former took control of the Scarborough Shoal, referred to by China as Nansha, over 500km due West of Manila. The Philippines also lay claim to the Spratly Islands, which lie in the vicinity of Palawan, under the legal justification of Res Nullius. Beijing insists on its “indisputable sovereignty over the islands in [the] South China Sea and its adjacent waters” and has refused calls by its maritime neighbour to settle the dispute through arbitration.

China and the Philippines in South China Sea stand-off

Ships from China and the Philippines are engaged in a stand-off over a remote and disputed shoal in the South China Sea. Despite the tension, both sides are pledging a diplomatic solution.

A warship from the Philippines approached the Scarborough Shoal, off the country’s northwestern coast, on 7 April as part of a routine patrol. There it found eight Chinese fishing boats, and upon boarding them claimed to have found illegally-caught fish and coral.

Two Chinese surveillance boats then arrived and blocked the Philippine warship from arresting the fishermen. A third arrived on 11 April, whilst the Philippines sent a second vessel to back up its warship on 12 April.

 

The situation is reportedly tense, with the fishermen essentially blockaded onto the uninhabited shoal. The Chinese media has taken a bellicose stance, warning that it will “react accordingly” in the event of a military clash and accused Manila of taking a “radical approach”.

Chinese state media and government officials have also been insistent that the shoal belongs to China. Filipino Foreign Secretary Albert Del Roasrio, meanwhile, said that the shoal “is an integral part of Philippine territory”.

The dispute over ownership reflects a much wider dispute over maritime borders in the South China Sea. China claims vast tracts of the sea, including its many island chains, largely due to the extensive oil and gas resources which are believed to lie beneath them.

 

Despite the confrontation, both Manila and Beijing have stated their commitment to a diplomatic solution. Filipino officials have reportedly proposed a compromise solution, although details have not been made public and China has not formally responded.

 
The situation is likely to cool down but it underscores the rising tensions across the South China Sea, where relations China and US-backed states are increasingly fraught. Manila recently called for a coordinated stance by South-East Asian states on the South China Sea, before entering into discussions with China on maritime borders.

Sources: Guardian, BBC, Global Times, Reuters

China, Philippines positive on defusing South China Sea tensions

China and the Philippines are closer to settling a long-running dispute over their maritime boundary, after a state visit by Philippine President Beningno Aquino to Beijing which began on 31st August. During the visit Aquino, who this summer has been bullish towards China, struck a conciliatory note. Calling for greater economic links between the two states, he announced that “the Philippines is indeed open for business”.

The Philippine President is accompanied by 300 business leaders in an attempt to boost bilateral economic relations, anticipating an increase to $60 billion in five years, up from $27.7 billion in 2010. 

However the main focus of the visit is on the contested border in the South China Sea, where the Philippines – like many other Southeast Asian states – are at loggerheads with Beijing over maritime boundaries and the ownership of the isolated Spratly Islands. Disputes over the islands, or rather the extensive oil and gas reserves believed to lie beneath them, are a potential flashpoint for conflict.

Aquino and his Chinese counterpart Hu Jintao released a joint statement on 1st September, in which they “agreed not to let the maritime disputes affect the broader picture of friendship and cooperation” and “reiterated their commitment to addressing the disputes through peaceful dialogue”. Although this is standard diplomatic boilerplate, Aquino did reveal some signs of progress the previous evening. 

Speaking to reporters after meeting Hu, Aquino revealed that China is now calling for a legally binding code of conduct for all nations operating in the South China Sea. This would go beyond the non-binding 'guidelines' which regional states had agreed on at a meeting of the Association of Southeast Asian Nations (ASEAN) in July. Aquino was buoyed by the news, calling the Chinese proposal “very significant”. Hu also contributed to the positive atmosphere, calling for the South China Sea to develop into “a sea of friendship, peace and cooperation”. 

A legally binding code of conduct would be difficult to draw up, if the wrangling over the July guidelines is any guide. Disagreements between the ASEAN nations ensured that the proposals were ambiguous and vague. Other regional states will be watching carefully to see if China's proposed code of conduct would favour Beijing or be designed to exclude the US, which has backed the smaller states, from regional affairs. Given China's assertive stance in the South China Sea, it is unlikely to make any concessions. 

In any case, a code of conduct would be extremely difficult to enforce. Most regional states have strayed from the spirit if not the letter of the 'Declaration on the Conduct of Parties in the South China Sea', agreed in 2002. It would be surprising if a legally binding code of conduct would seem sacrosanct when other legal tools, such as international arbitration, have yet to prevent regional disputes and confrontations.

Sources: AFP, Reuters, Bloomberg, Xinhua

Philippines stands to increase continental shelf through Benham Rise claim

The Philippines may gain 13 million hectares of territory should the UN approve its government's claim of the Benham Rise, reports the Philippine Daily Inquirer. The Benham Rise is situated off the eastern coast of the Philippines and may be recognised, under the UN Convention on the Law of the Sea (UNCLOS), as a part of its continental shelf in 2012. The Philippines is the only claimant to the Rise, a situation which represents a contrast to that off its western coast where title to the Spratly Islands remains disputed.

Given the seemingly straightforward nature of the claim, the government of the Philippines is keen to incorporate the Rise which, with its huge methane deposits, has the potential to make the Philippines a natural gas exporter. Should, under UNCLOS, Benham be determined to be a part of Philippines territory then there would be a legal basis for the government to negotiate exploration rights with private companies.

The Philippines claim was submitted to the UN under UNCLOS in 2009, and the Environment Secretary of the Philippines, Ramon Jesus Paje, has said that the UN intends to approve the claim in 2012.

Paje has said that the Philippines has only recently categorically defined the Benham Rise as attached to the continental shelf which, under UNCLOS, is the seabed and subsoil that extend beyond its 12 nautical mile territorial sea. Nevertheless, there is anticipation in the Philippines that the eventual incorporation of the Benham Rise will mark an important step towards energy self-sufficiency.