Manila: The Philippines Department of Energy will award oil exploration contracts in several areas including the disputed South China Sea to private firms, sources said.
Details have already been prepared for the awarding of 15 service contracts — which China calls ‘illegal' — to oil exploration firms and announcements will be made this month, Energy Secretary Jose Almendras said, but did not offer further details.
Some of the proposed service contracts are in east and north-west Palawan and the Sulu Sea, in the south-west and southern Philippines respectively.
60 per cent target
Several contracting rounds have taken place going back to last year as the Philippines targets 60 per-cent energy self-sufficiency. The South China Sea is claimed by China, Taiwan and Vietnam. Only China has come out against the plans of the Philippine government, which refers to it as the West Philippines Sea.
Earlier, Philippine Foreign Affairs Secretary Albert del Rosario said the government had offered foreign private firms oil exploration projects within the country's 200 nautical mile (300km) exclusive economic zone.
He referred to the United Nations Convention of the Law of the Sea as the basis for the Philippines' claim.
Potential flashpoint
He was responding to two former Chinese envoys in Manila who offered joint Philippines and China exploration in the contested areas to prevent a potential flashpoint in the region.
In Beijing, Chinese Ministry of Foreign Affairs spokesman Hong Lei was quoted as saying the Philippine government's offer of service contracts to private companies was illegal.
He said: "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."
