THE Duterte administration may rescind the joint oil and gas exploration deal with China if the arrangement will turn out "detrimental" to the Philippines, Malacañang said on Thursday, November 22.
Presidential Spokesperson Salvador Panelo said the joint exploration and exploitation agreement between the Philippines and China is not legally binding, thus it allows Manila to walk away from the deal just in case it is not compliant with the 1987 Constitution.
"Of course, definitely," Panelo said in a chance interview, when asked if the government can abandon the joint oil exploration deal if it is detrimental to the Philippines's interests.
"The predicate is: Is this agreement legal as far as we are concerned under the Constitution? Number two, is this beneficial to us? Otherwise, hindi tayo papayag. Siyempre palaging dapat pabor sa atin, hindi lang sa kanila pabor (Otherwise, we will not permit it. Of course, it would be favorable to us, not just to them)," he added.
The Philippines and China signed a memorandum of understanding (MOU), which seeks cooperation on oil and gas development, during Chinese President Xi Jinping's visit to Manila on Tuesday, November 20.
On Thursday, November 22, Foreign Affairs Secretary Teodoro Locsin Jr. released a copy of the agreement between the two nations in a television interview.
The MOU does not specify areas where joint exploration would be done. It, however, notes that the Philippine and China should facilitate oil and gas exploration and exploitation "in relevant maritime areas consistent with applicable rules of international law."
The agreement also seeks the creation of working groups that would work on an agreement for joint exploration of energy resources in specific areas subject to approval. The proposal is to establish an "inter-governmental joint steering committee" and one or more "inter-entrepreneurial working groups."
The committee would be co-chaired by the foreign and energy ministries of both countries, while the working groups would consist of representatives from enterprises authorized by the two governments.
In a statement issued Friday, November 23, Energy Secretary Alfonsu Cusi said the impending joint exploration "may or may not include joint exploration between the Philippines and China in the West Philippine Sea."
"I must emphasize that whatever the outcome of this MOU, the rights of existing Service Contract holders will be protected. I understand that there is great interest in the MOU signed with China. I would ask for everyone’s patience until the full details are ready to be made public," the Energy chief said.
"As the secretary of Energy, my priority is safe-guarding our country’s long-term energy security. A component of this is developing new indigenous energy resources in the West Philippine Sea," he added.
Cusi's statement came amid long-standing disputes among the Philippines, China and other claimant nations in the hotly-contested South China Sea, which is rich in oil and gas deposits.
Panelo said the deal between the two countries should be based on "mutual respect, mutual fairness, and respect for each other's sovereignty."
He added that the Duterte government would not hesitate to terminate the MOU with China, if "serious" studies will show that the joint exploration arrangement violates the Philippine Constitution and laws.
"The two parties will enter into an agreement based on mutual respect, mutual trust, and mutual respect on sovereign aspect," the Palace official said.
"If serious studies show na mali yung ano — alam mo (that there is something wrong), in law, there is such a thing as recision of contract. If the contents of the contract does not contain the intention of the parties, you can rescind it," he added. (SunStar Philippines)