Moratorium on drilling, exploration to be lifted soon — Cusi

MANILA, Philippines -  Energy Secretary Alfonso Cusi is positive the moratorium on drilling and exploration in the disputed West Philippine Sea will be lifted soon as talks between the Philippines and China are progressing smoothly.

This is being done with a sense of urgency since drilling and exploration in the disputed area can help the country unlock energy security, Cusi said but declined to give a timeframe.

“We are doing this with a sense of urgency because we need it for our national energy security but we are very being analytical, being very careful,” he said.

Discussions between the Department of Foreign Affairs (DFA) and its Chinese counterpart are continuing to build confidence on both sides and to form one decision.

“We develop the trust but trust must be supported with concrete actions. We have to get that so when the moratorium is lifted, there will be no any untoward action that can happen,” Cusi said.

On the local side, the Department of Energy (DOE) and DFA are working on details before and after the moratorium is lifted.

“The DFA and DOE are working together so that we can resume work at the contested areas and we are looking for ways. By being pragmatic about it, we are looking for ways, solution, a way to move forward that is a win-win for all,” the DOE chief said.

As for the DOE, it can only work on discussion, monitoring, preparation of notices to the private sector with interests in the disputed areas.

“That’s all we can do because it will be private sector work,” Cusi said. “But we have to give the order that they can resume, before they start.”

Earlier, businessman Manuel Pangilinan renewed his call to lift the moratorium on drilling and exploration in the disputed area amid warming relations between the two nations.

This as DFA Secretary Alan Peter Cayetano has said that both sides are moving forward on the issue.

Pangilinan’s Forum Energy holds a 70 percent stake in Service Contract 72, which covers Recto Bank in the disputed territory.

In August 2012, the Department of Energy issued a moratorium on all exploration and drilling works in the area because of the dispute.

Once the moratorium is lifted, Pangilinan said they would talk to the Chinese authorities to prepare for actual exploration or before the company sends its boats to the area.

Forum and China National Offshore Oil Co, China’s state-owned oil producer, have earlier been in discussions for a possible commercial arrangement for exploratory works in the disputed area.

The Recto Bank area is estimated to contain prospective resources of as much as 16.6 trillion cubic feet of gas and 416 million barrels of oil.