SC affirms Arroyo-era exploration deal with China, Vietnam unconstitutional
MANILA, Philippines — The Supreme Court has affirmed the unconstitutionality of a 2005 exploration agreement in the South China Sea involving oil companies from the Philippines, China and Vietnam, the high court announced Wednesday.
The SC en banc denied with finality due to lack of merit the motion of reconsideration of its Jan. 10, 2023 decision that declared unconstitutional and void the tripartite agreement for a joint marine seismic undertaking (JMSU) by and among the Philippine National Oil Company, China National Offshore Oil Corp. and Vietnam Oil and Gas Corp.
Under the deal signed by the administration of former President Gloria Macapagal-Arroyo, the three countries were to jointly research the petroleum resource potential of an area in the South China Sea covering 142,886 square kilometers.
The high court reiterated that the JMSU allows wholly-owned foreign firms to participate in the exploration of the country’s natural resources without observing safeguards provided in the 1987 Constitution.
“In denying the motion for reconsideration, the court reiterated that the JMSU is unconstitutional as it involves the exploration of natural resources,” it said.
The SC also dismissed the contention of respondents who insisted the deal does not involve exploration by attacking the definition of the term under the Petroleum Act of 1949. The respondents argued the law was already repealed by Presidential Decree 87 or the Oil and Exploration and Development Act of 1972.
The court held that PD 87 does not provide a contrary definition for “exploration” and does not at all define the term.
The JMSU expired in July 2008.
Former Bayan Muna Reps. Satur Ocampo and Teodoro Casiño, together with five other solons, asked the SC to void the exploration agreement. The case was deemed submitted for decision in January 2010 but it took another 12 years for the SC to rule on it.
Tensions are high in some parts of the South China Sea, an most important trade routes and is rich in natural resources such as oil and gas.
Beijing claims sovereignty over almost the entire South China Sea, ignoring an international ruling that the assertion has no legal basis. — Gaea Katreena Cabico
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