The Philippines’ Supreme Court on Tuesday declared the country’s 2005 energy exploration agreement with Chinese and Vietnamese companies illegal, saying the constitution does not allow foreign entities to exploit natural resources. made a verdict.
The decision, based on an agreement that expired in 2008, could complicate China’s efforts to revive oil and gas exploration talks with the Philippines in a dispute-free area of the South China Sea. provided no explanation as to why the judgment was handed down 14 years after the filing of the case.
China and the Philippines have been at odds for decades over sovereignty and natural resources in the South China Sea, leading to a landmark arbitration case won by Manila in 2016.
Efforts to find legally viable ways to cooperate in energy exploration have repeatedly hit a wall.
Last June, the former Philippine government abandoned its latest attempt, citing constitutional restrictions and sovereignty issues.
Ahead of his visit to China last week, Philippine President Ferdinand Marcos Jr. said the country must find ways to tap untapped energy reserves in its exclusive economic zone. without Chinese expertise.
China claims jurisdiction over most of the South China Sea and risks disrupting its energy activities, making it difficult for the Philippines to find a foreign partner despite an arbitration tribunal clarifying its rights to Manila. is difficult.
The Supreme Court on Tuesday voided a deal between the state-owned Philippine National Oil Company, China National Offshore Oil Company and Vietnam Oil and Gas Company, which covers 142,886 square kilometers (55,169 square miles) of water.
It ruled illegal because the constitution stipulates that the Philippine state must control and oversee the activities and that the companies involved must be majority-owned by the Philippines.
