THE PHILIPPINE Supreme Court (SC) has stood by its decision voiding a 2005 oil exploration government deal with China and Vietnam for being illegal.
In a statement on Wednesday, the tribunal said the agreement between the state oil agencies of Vietnam, China, and the Philippines violated the Constitution’s provision on exploring the country’s natural resources.
A copy of the ruling has yet to be uploaded to the court’s website.
In a January ruling, the High Court said the 2005 deal was illegal for allowing foreigners to explore the country’s natural resources covering 142,886 square kilometers without full state supervision.
Former President Gloria Macapagal-Arroyo’s administration entered into the Joint Marine Seismic Undertaking (JMSU) deal with China and Vietnam through their state-owned oil companies.
“Since the objective of the JMSU as stated in its Fifth Whereas Clause is ‘to engage in joint research of petroleum resource potential’… the agreement clearly involved exploration,” the SC said.
The state had argued that the deal was aboveboard because the activities only involved “pre-exploration activities,” which the tribunal disagreed with.
The court said the purpose of the pact was for these companies to explore the area for petroleum and other gas resources.
Under the Constitution, the exploration, development and use of the country’s natural resources must be under the full control and supervision of the state.
In March, the Department of Energy said it would work with the Office of the Solicitor General on how the tribunal’s ruling would affect resource exploration involving foreign partners.
The government of former President Rodrigo R. Duterte ended exploration talks with China just before his term ended last year, citing sovereignty issues. — John Victor D. Ordoñez
