Oil and Gas sector is all set to make a great comeback with lots of openings for professionals in this industry. Recently, to resolve the territorial dispute in South China Sea, a memorandum of understanding for cooperation is signed by the governments of China and the Philippines in oil and gas exploration and development. During the meetings in Manila, MOU was one of a series of documents which has been signed on several subjects between Chinese President Xi Jingping and Philippines President Rodrigo Duterte.
In the year 2016, a United Nations arbitration challenge was won by the Philippines government to China’s claim to nearly all the South China Sea. The Chinese territorial assertion was challenged by Brunei, Malaysia, Taiwan, and Vietnam.
The Philippines also looking to add an area known as Rector Bank, which China calls Reed Bank.In the year 2014, it suspended exploration of the area due to territorial dispute. However, they want advancement of exploration before deepwater Malampaya gas field offshore Palawan depletes. The country is quite dependent on Malampaya gas for power generation. However, Duterte has not pressurized for enforcement of the arbitration ruling and started discussion about the joint exploration with China last year.
Government issued a joint statement in Manila and agreed “to exercise self-restraint in the conduct of activities in the South China Sea that would complicate or escalate disputes and affect peace and stability.”
Formation of a steering committee that includes countries’ foreign and energy ministries to generate cooperation agreements within 12 months are also called by the oil and gas MOU.
Latest Oil and Gas Industry News update Available Here