Padilla resolution urges resumption of joint oil and gas development talks with China
MANILA, Philippines — A resolution has been filed at the Senate urging the resumption of talks for joint oil and gas development with China in the West Philippine Sea to address high oil prices.
Sen. Robinhood Padilla, a former actor, on Thursday filed Senate Resolution No. 6, which urges President Ferdinand Marcos Jr. to continue bilateral discussions with Beijing "without bargaining [away] the sovereign rights of the Philippines on the disputed territories."
“The Philippines requires a long-term strategy to resolve its oil dependency from foreign sources as the country is vulnerable to the negative effect of the skyrocketing oil prices dictated by the world market’s reaction to the Russia-Ukraine conflict,” the resolution read.
A resolution expresses the sense of the Senate but, even if adopted, cannot compel the executive branch to do anything.
Padilla also filed Senate Bill 229, which aims to suspend excise taxes on unleaded premium gas, regular gas and diesel once the average Dubai crude oil price breaches $80 per barrel to further support motorists amid rising prices of commodities.
WATCH: Why is oil so expensive these days?
The Malampaya natural gas field, which fuels around 40% of the gas-fired plants in Luzon and powers 20% of the country’s electricity needs, is expected to be fully depleted by 2027.
Last month, then-Foreign Affairs Secretary Teodoro Locsin Jr. announced that talks for a joint energy project with China were "terminated completely" under the order of then-President Rodrigo Duterte.
"We got as far as it is constitutionally possible to go," Locsin said. "Three years on and we had not achieved our objective of developing oil and gas resources so critical for the Philippines."
China still claimed that a joint energy exploration project was still the “right way” for both countries “to manage maritime differences and achieve win-win results.”
While a 2016 Hague ruling already invalidates China’s historic nine-dash-line claims over the South China Sea and provided that parts of the West Philippines Sea are in the Philippines’ exclusive economic zone and continental shelf, Beijing has been ignoring the award.
Retired associate Justice Antonio Carpio has called on Marcos Jr. to uphold the arbitral ruling to exclusively use the West Philippine Sea’s natural resources.
READ: Marcos admin urged to assert arbitral award to help keep energy costs down
Within the disputed waters is Recto Bank (international name: Reed bank), which the Department of Energy noted has an estimated resource potential of 165 million barrels of oil and 3,486 billion cubic feet of gas.
Carpio said that without it, Manila would have to resort to importing liquefied natural gas (LNG), which would push energy prices further up. — Kaycee Valmonte with reports from Franco Luna
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