China, Philippines Argue Over Planned Oil Search

The Philippines said Wednesday it has the right to invite foreign companies to explore for oil and gas in waters located between its western coast and the South China Sea, dismissing China's claim to the area in a fresh spat between the Asian neighbors.
 
The verbal tussle erupted after Energy Secretary Jose Almendras told reporters in Manila this week that the Philippine government has invited major foreign oil companies to invest in fuel exploration in two offshore areas northwest of Palawan province that fall within the country's 200-mile exclusive economic zone.

Chinese foreign ministry spokesman Hong Lei said in Beijing Tuesday that the offshore areas are China's.

"It is illegal for any country, government or company, without the Chinese government's permission, to develop oil and natural gas in waters under Chinese jurisdiction," Hong said when asked to comment on the Philippine plan.

Rejecting China's position, Philippine Foreign Secretary Albert del Rosario said in a brief statement Wednesday that the offshore areas being opened to foreign investors "are well within our sovereignty" based on the United Nations Convention on the Law of the Sea.

Philippine officials separately accused China last year of repeatedly intruding into its territorial waters, and at least once trying to disrupt a Philippine oil exploration in another offshore area called the Reed Bank, also off Palawan.

Palawan province, about 510 miles (820 kilometers) southwest of Manila, faces the South China Sea. The sea, which surrounds potentially oil- and gas-rich islands and reefs, is claimed entirely by China, but the Philippines, Brunei, Malaysia, Taiwan and Vietnam have made competing claims.

The Philippines has invited companies to explore for oil and gas in 15 areas nationwide, including in the offshore areas lying 49 miles (79 kilometers) and 76 miles (123 kilometers) from Palawan.

Almendras said Monday the Philippine government would start awarding exploration contracts to investors next month. He did not say whether the first batch of permits will cover the two areas also being claimed by China.