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Is China after the Philippines’ oil & gas fields?

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By Raïssa Robles

Filipinos groaning from high power bills might have good reason to be concerned about China’s claims in the West Philippine Sea (South China Sea).

Philippine government officials have expressed apprehension that China  may be after the oil and gas-rich areas there, including  the Sampaguita gas field recently discovered by an oil exploration firm under contract with the Philippine government.

Philippine officials are concerned because the country’s energy future is at stake.

Department of Energy Undersecretary Jose Layug Jr said in a recent media briefing, which I attended, that “the Malampaya (gas) reservoirs are good until 2024″ or only for the next 12 years.

Malampaya gas now provides 40% of the power requirements of Luzon where most of the country’s economic activities are located.

The gas is currently being piped to three power plants in Batangas which produce a combined 2,700 megawatts.

 

Philippines’ biggest gas find

Shortly after the DOE’s media briefing last month, a major gas find bigger than Malampaya was announced by Forum Energy Plc in the Sampaguita gas field located in Recto Bank, internationally known as the Reed Bank.

This discovery might not have taken place if the Philippine military, on orders of its Commander-in-Chief President Benigno Aquino, had not secured Forum’s survey ship which Chinese vessels had threatened to ram this March 11, 2012.

The harassment of Forum’s survey ship actually started over a year ago when two Chinese patrol boats visibly stalked the survey ship on March 2, 2011. This prompted the Philippines to lodge a diplomatic protest with China then.

At that time, the president’s spokesman Edwin Lacierda told a news briefing:

The administration has always asserted that it will dismiss out of hand any claim to what are considered integral parts of Philippine territory, such as the Recto Bank (Reed Bank) in western Palawan.

Recto Bank is some 80 nautical miles northwest of Palawan or well within the Philippines’ maritime exclusive economic zone (EEZ) under UNCLOS (United Nations Convention on the Law of the Sea).

Lacierda also said:

Concerning our defense posture, the administration is determined to improve the capabilities of our military and Coast Guard to enable the effective patrol and protection of our national territory and exclusive economic zone.

President Aquino, during his State of the Nation address in July last year (SONA), also emphasized Philippine sovereignty over Recto Bank when he said:

Malinaw ang pahiwatig natin ngayon sa buong mundo: Ang sa Pilipinas ay sa Pilipinas; kapag tumapak ka sa Recto Bank, para ka na ring tumapak sa Recto Avenue.

[Our statement to the entire world is very clear: What is the Philippines’ is the Philippines; when you set foot on Recto Bank , it is as if you have set foot on Recto Avenue (a street in the Philippine capital of Manila) ]

On September 1 last year, following his SONA, President Aquino flew to Beijing to meet personally with President Hu Jintao. Both then issued a joint statement that, among others, said:

The two sides will discuss the establishment of a nautical highway that will infuse new energy to bilateral trade and economic activities between the two countries which complement and support the connectivity between ASEAN and China.

Both leaders exchanged views on the maritime disputes and agreed not to let the maritime disputes affect the broader picture of friendship and cooperation between the two countries. The two leaders reiterated their commitment to addressing the disputes through peaceful dialogue, to maintain continued regional peace, security, stability and an environment conducive to economic progress. Both leaders reaffirmed their commitments to respect and abide by the Declaration on the Conduct of Parties in the South China Sea signed by China and the ASEAN member countries in 2002.

But a week after Aquino’s five-day visit to China, Budget Secretary Florencio Abad – one of the cabinet ministers closest to the president – said the country would be beefing up its defense over its gas fields.

Abad announced that the Philippines would spend P4.95 billion for buying helicopters and setting up radar stations in order to strengthen the country’s defense of its oil and gas assets near Palawan. Royalties from the Malampaya gas field would be used for this purpose.

Quietly, the Philippine military also told Philex Petroluem – Forum’s parent firm – to carry on with its survey of the Sampaguita gas field off Palawan. And it promised to secure the ship.

As a result, the survey recently confirmed and for the first time that the Sampaguita gas field – which had been an area of exploration since 1970 or 42 years ago – was indeed commercially viable. Its total reserves were estimated to be as high as 16.6 trillion cubic feet (TCF) of gas and 416 million barrels of oil. It was even bigger than the Malampaya gas field.

The Sampaguita gas field discovery – 90 nautical miles northwest of Palawan – is nowhere near Scarborough Shoal (which is northwest of Zambales in the island of Luzon) where the tense standoff between armed Philippine and Chinese vessels is now taking place.

 

Earlier, I wrote about the competing claims of the Philippines and China on Scarborough Shoal. See – Why get so riled up over some rocks under the sea?

This piece will be about the competing claims, especially in the Spratlys or what China calls the Nansha Islands. A lot of articles have been written about how many islands each country is claiming.

I would like to write about what is really important for the Philippines in this area – the oil and gas lying beneath the West Philippine Sea.

First, please take a look at the map below which shows the various countries’ claims in the area. China has enclosed all its claims in a “nine-dashed line” – which is shown here as a red line.

The next map, posted by the US Energy Information Administration but which it obtained from the US Central Intelligence Agency, shows the oil wells that each country has in actual operation. Notice that most of these oil wells are actually within China’s nine-dashed line.

Notice that Malaysia and Brunei have many oil wells in actual operation.

In contrast, notice that the Philippines has only ONE oil well in actual operation, plus ONE “new field discovery.”

Please note, too, that the Philippines’ ONE oil well in actual operation – the Malampaya gas field – is right on China’s claimed nine-dashed line.

The Philippines’ maritime area northwest of Palawan is believed to be rich in untapped oil and gas deposits.

However, while the Philippines has been offering for tender the oil exploration blocs in northwest Palawan for decades, it was only in recent years that China  became quite adamant about its ownership rights of the area covering these exploration blocs.

In the mid-1990s, the quarrel between China and the Philippines centered more on fishing rights rather than on oil exploration blocs. (NOTE: At the end of this piece, I have added a list of the various military encounters between China and other claimant states. This list shows that the Philippine military has engaged China, Vietnam and Malaysia through the years.)

One senior Philippine government official traced China’s interest in Recto Bank to the joint survey that China and the the Philippines signed in September 2004. The official, who spoke to me on condition of anonymity, said:

The truth is, there’s nothing in the Spratlys (or Nansha islands) but coral and endangered beautiful fish. There are no oil resources there.

The resources are in Recto Bank which China started claiming only after the previous administration (of President Gloria Macapagal-Arroyo) entered into a Joint Marine Seismic Undertaking (JMSU) with China in 2004.

Forum’s recent gas find is on Recto Bank, which is also near the Camago-Malampaya fields now in operation. The US Energy Information Administration (US EIA) noted that:

The Filipino Malampaya and Camago fields are in waters claimed by China. Both fields are estimated to contain a combined amount of 2.3 to 4.4 trillion cubic feet of natural gas reserves. The Philippines has proceeded with development of the fields and linked the gas output to three power plants via a 312-mile pipeline. There have been no objections from China regarding this development. The Malampaya came on stream in October 2001.

Indonesia also came under protest by China after the former found gas-rich fields off Natuna Islands, the US EIA noted:

Indonesia’s claim was undisputed until China released an official map with unclear maritime boundaries indicating that Chinese-claimed waters in the South China Sea may extend into the waters around the Natuna Islands.

But the US EIA added:

Indonesia responded in 1996 by holding large military exercises in the Natuna Islands region. Since then, Indonesia has begun major natural gas production in the Natuna area without China voicing any objection. Indonesia has been exporting Natuna gas to Singapore’s Jurong island via a 400-mile undersea pipeline since 2001.

As of 2008, the Natuna fields are estimated to have close to 46 trillion cubic feet of recoverable reserves – dwarfing Forum’s Sampaguita gas field.

As for Malaysia, the US EIA also noted:

Many Malaysian natural gas fields located offshore Sarawak are also claimed by China, but to date, China has not specifically objected to their development. Discoveries of oil in 2002 and 2004 (by Murphy Oil and Shell Malaysia, respectively) off the coast of Sabah have contributed to the dispute between Malaysia and Brunei over offshore rights. Brunei had asserted a 200-mile exclusive economic zone (EEZ) off its coastline in 2000. Negotiations between the two governments to resolve the issue are ongoing.

China’s objections with Manila intensified last year

In July 11 last year, the Philippines offered for bidding oil exploration Blocs 3 and 4, northwest of Palawan. China vigorously registered its objections over this.

The two blocs are part of the area where President Gloria Macapagal-Arroyo allowed China and Vietnam to undertake a seismic survey in 2004, DOE Undersecretary Layug confirmed to me in a recent interview.

Next month is the deadline for the submission of the bids.

The JMSU was signed on September 1, 2004 by China National Offshore Oil Corporation and Philippine National Oil Company.

Barry Wain of the Far Eastern Economic Review called the JMSU “Manila’s bungle in the South China Sea.”

Thanks to the JMSU, Wain said:

The Philippines also has made breathtaking concessions in agreeing to the area for study, including parts of its own continental shelf not even claimed by China and Vietnam. Through its actions, Manila has given a certain legitimacy to China’s legally spurious “historic claim” to most of the South China Sea.

Why did the Philippines do this? I’ll be writing about this later on in another article.

___________________________

Military Clashes and Incidents in the South China Sea between 1970 and 2002

[NOTE: I have highlighted in red those which involved the Philippine military.]

1974 – Between China & Vietnam – China seized the Paracels from Vietnam, with 18 of its troops killed in clashes on one of the islands.

1988 – Between China & Vietnam – Chinese and Vietnamese navies clashed at Johnson Reef in the Spratlys. Several Vietnamese boats were sunk and over 70 sailors killed.

1992 – Between Vietnam & China – Vietnam accused China of landing troops on Da Luc Reef. China seized almost 20 Vietnamese cargo ships transporting goods from Hong Kong from June – September.

1994 – Between China & Vietnam – China and Vietnam had naval confrontations within Vietnam’s internationally recognized territorial waters over Vietnam’s Tu Chinh oil exploration blocks 133, 134, and 135. Chinese claim the area as part of their Wan’ Bei-21 (WAB-21) block.

1995 – Between China & the Philippines – China occupied Philippine-claimed Mischief Reef. Philippine military evicted the Chinese in March and destroyed Chinese markers.

1995 – Between Taiwan & Vietnam – Taiwanese artillery fired on a Vietnamese supply ship.

1996 – Between China and the Philippines – In January, Chinese vessels engaged in a 90-minute gun battle with a Philippine navy gunboat near the island of Capone, off the west coast of Luzon, north of Manila.

1997 – Between the Philippines & China – The Philippine navy ordered a Chinese speedboat and two fishing boats to leave Scarborough Shoal in April; the Philippine navy later removed Chinese markers and raised its flag. China sent three warships to survey the Philippine-occupied islands of Panata and Kota.

1998 – Between Vietnam & the Philippines – In January, Vietnamese soldiers fired on a Philippine fishing boat near Tennent (Pigeon) Reef.

1999 – Between the Philippines & China – In May, a Chinese fishing boat was sunk in a collision with Philippine warship. In July, another Chinese fishing boat was sunk in a collision with a Philippine warship.

1999 – Between China & the Philippines – In May, Chinese warships were accused of harassing a Philippine navy vessel after it ran aground near the Spratlys.

1999 – Between Vietnam and the Philippines – In October, Vietnamese troops fired upon a Philippine air force plane on reconnaissance in the Spratlys.

1999 – Between Malaysia & the Philippines – In October, Philippine defense sources reported that 2 Malaysian fighter planes and 2 Philippine air force surveillance planes nearly engaged over a Malaysian-occupied reef in the Spratlys. The Malaysian Defense Ministry stated that it was not a stand-off.

2000 – Between the Philippines & China – In May, Philippine troops opened fire on Chinese fishermen, killing one and arresting seven.

2001 – Between the Philippines & China – During first three months, the Filipino navy boarded 14 Chinese flagged boats, confiscated their catches, and ejected vessels out of contested portions of the Spratlys.

2001 – Between the Philippines & China – In March, the Philippines sent a gunboat to Scarborough Shoal to, “to ward off any attempt by China to erect structures on the rock”.

2002 – Between Vietnam & the Philippines – In August, Vietnamese troops fired warning shots at Filipino military reconnaissance planes circling over the Spratlys.

SOURCE: United States Energy Informationa Administration

Related Story

Why get so riled up over some rocks under the sea?

Comments

  2. I think this should be investigated if there is binding legal agreement which GMA sign and approved ,JDV is also instrumental on this issue he kept quiete in this issue to cover up his influence in the congress.Howeve as Aquino admin said the agreement is already null.
    This the reason why China is building up a preasurre to do bilateral agree to weeken tha ASEAN and divide in take advanatges for the exploration of the resources .They have a good think tank in china.Strategy play the role.See what they did they not participate in policing the trouble nation.
    They concentrate in the Economy ,let the wester n country waste thier resources ,For two decaced they succeed .US and his allied countries suffer economic growth.
    Which country take adavantages is only China ,there is no fair game in economic policy ,always take advantages due to thier low labor resources.
    Now is high time for them to look for resources to maintain thier economy.
    They penetrated Africa,No they have cooperation with Pakistan putting up ports for commercial and military base,in Sri Lanka also so they encircling India which they border disputes.Going bak to Pakistan if they succed they are building Pipiline from Pakistan al the way to China. So who take advantages in after US policing the area again.
    In short is building Military based while waiting for the deployment of thier first carrier to be deployed not later by 2012. They have blue water navy already in Philippines they are building based in disputed are a listening device for milatry use.

    So a big mistake for the allied forces didnt forcast what happened in past decade did they gain something eceonimical BIG NO . Who gain is China very simple logic.

    This the way world order changed rapidly.we better watch out. China is expanding in space .In order to be in power or with level of US and Russia.

    This is war of technology which put the country in front of others.Copying intelectual rights is not fair play which China take all the advantages for the past two decade of US Policing.

    We should wake up which country we joined .
    The first article 1 of UN seem not faloowed and respected

  3. Any revealing and insightful articles on Scarborough situation and mining in the Philippines?

    Kind of quiet in CyberPlaza…. think mining will be the next fulcrum event in our country?

  4. PH ships leave Panatag
    ‘Butchoy’ forces end to standoff with China

    By Tina G. Santos, Philippine Daily Inquirer
    1:51 pm | Saturday, June 16th, 2012

    It looks like stormy weather may break the standoff between the Philippines and China.
    Citing bad weather, President Benigno Aquino III has ordered home two Philippine ships engaged in a standoff with China over Scarborough Shoal, Foreign Secretary Albert del Rosario said on Saturday.

    Mr. Aquino ordered a Philippine Coast Guard patrol vessel and a Bureau of Fisheries and Aquatic Resources survey ship out of the disputed shoal in the West Philippine Sea (South China Sea) on Friday night, Del Rosario said.

    “Last night, President Aquino ordered both of our ships to return to port due to increasing bad weather,” Del Rosario said in a statement.
    “When [the] weather improves, a reevaluation will be made,” he added.
    The announcement was made as Typhoon “Butchoy” approached the country’s north from the Pacific Ocean.

    With Butchoy gaining power and growing into a typhoon as it skimmed the eastern seaboard of the Philippines, intensified monsoon winds were causing squalls in the West Philippine Sea on Saturday.
    China was expected to follow the Philippine safety lead and order all of its vessels home from Scarborough Shoal.

    And that could be the end of the standoff that began after Chinese government vessels blocked Philippine ships from arresting Chinese fishermen caught poaching sharks and collecting rare clams and corals in the shoal’s lagoon on April 10.

    The two Philippine vessels had been around the shoal claimed by both countries since the standoff began in April.

    China had a larger number of vessels around the shoal, though both sides imposed unilateral fishing bans in the area in May.

    As of Thursday, China had seven government ships outside the Scarborough Shoal’s lagoon and 20 to 26 fishing boats within the lagoon, according to the Department of Foreign Affairs (DFA).

    Del Rosario told reporters on Friday that China had expressed intention to order the fishing boats home.

    Pullout agreement

    “The Chinese still have vessels in the lagoon and we’re waiting for them to remove those vessels from that area,” Del Rosario said.

    Other than the two government vessels, the Philippines had no more vessels at the shoal.
    On Saturday, Del Rosario said China had agreed to pull out all of its vessels in the lagoon. “We are waiting for them to comply with their commitment,” he said.

    Negotiations were going on for the removal of the Chinese government vessels, DFA spokesperson Raul Hernandez said on Friday.

    There was no word from the department on Saturday about the negotiations.
    As of Friday, China was talking about Chinese fishing boats “doing normal fishing” in waters around “Huangyan Island”—China’s name for Scarborough Shoal—and Chinese government vessels providing “management and services” for the “fishing ships and fishermen.”

    Located 220 kilometers west of Zambales province, Scarborough Shoal is well within the Philippines’ exclusive economic zone.

    But China claims nearly all of the West Philippine Sea, even waters close to the coasts of neighboring countries.

    The Philippines and Vietnam have in recent years accused China of becoming increasingly aggressive in staking its claim.

    Besides the Philippines and Vietnam, Malaysia, Brunei and Taiwan also have territorial claims in the disputed Southeast Asian waters that rival China’s interests in the region. With a report from AFP

  5. I don’t think its just the natural resources. It’s also about the strategic sea lanes.

    • For China it’s many things. For its leaders it’s all about the coming Politburo meeting this autumn, which will decide who the country’s leaders will be. Panatag Shoal presents an opportunity to rack up pogi points with the public. For the populace it’s a useful diversion made easier to pull off because of massive (not quite total) state censorship and control of the media. For the Chinese military it’s an opportunity to display strength not just to the populace ad hapless Filipinos but also to competitors such as Japan and the US. For the country as a whole it’s an opportunity to assert its strength and influence and make an effort to efface the humiliation the country underwent from the middle of the 19th century to the time the Communists won

      • For China’s legislators, the richest 70 of whom is richer than the entire US congress, entire supreme court, all cabinet members, and president combined, there is little doubt where their personal interest lies.

        I wonder how rich their 70 “poorest” legislators are.

    • @anonymous_coward,

      Thanks for the link. A good read.

      Read related comment @ ‘Why get so riled up over some rocks under the sea?‘ #118.2

    • Hey Raïssa

      Your name and write-up was featured and mentioned in this article, Part 2 of 2.

      Congrats.

      but oops, the writer misspelt your name. LOL!

      Page 2 of 2
      The riddle of the Scarborough Shoals
      By Peter Lee

      As journalist Rossia Robles pointed out in an in-depth series
      posts, the Philippine anxiety over the Scarborough Shoal has little to do with the material value of the fishing grounds or the psychic gratification of asserting sovereignty over the atoll. The critical issue for the Philippines in the South China Sea (or, as it is inevitably referred to in Manila, the West Philippine Sea) is energy. [6]

  7. Philippines resumes ‘consultations’ with China over shoal row

    MANILA, Philippines—The Philippines has resumed discussions with China on ending, even temporarily, the current impasse in the two countries’ dispute over the Scarborough Shoal in the West Philippine Sea (South China Sea), Foreign Secretary Albert del Rosario said Saturday.

    Del Rosario told the Inquirer in a text message that the two governments “resumed consultations earlier this week to address the stalemate.”

    “A diplomatic result ending the current impasse in Bajo de Masinloc, which we hope can be achieved, will at best be a temporary one. Ultimately, we will need an overall solution,” he said.

    According to Del Rosario, the Philippine government was “moving forward with the legal track as a durable solution to our disputes in the West Philippine Sea.”

    Stressing the need to “pursue a peaceful resolution” of the conflict with China, he said the DFA would follow a three-track approach that includes political initiatives via the Association of Southeast Asian Nations, legal action via the United Nations Convention on the Law of the Sea settlement mechanisms and diplomacy through continuing consultations to defuse the current situation at Bajo de Masinloc.”

    READ THE rest of the news at globalnation dot inquirer dot net

    SOURCE: By Jerry E. Esplanada, Philippine Daily Inquirer, 4:51 pm | Saturday, May 12th, 2012

  8. Filipinos rally outside China embassy to protest ‘bullying’

    MANILA, Philippines—Hundreds of Filipinos demonstrated outside the Chinese embassy in Makati City on Friday over an escalating territorial row, with the protesters denouncing China’s rulers as arrogant bullies.

    Waving national flags, the protesters led called for Chinese ships to pull away from a disputed shoal in the West Philippine Sea (South China Sea) where both nations have had ships stationed for more than a month in an effort to assert their sovereignty.

    “Our protest is directed at the overbearing actions and stance of the government in Beijing, which behaves like an arrogant overlord, even in the homes of its neighbors,” said rally organizer Filipino-American Loida Nicholas Lewis.

    The protesters, led by Akbayan members, carried placards that read: “China stop bullying the Philippines”, “Make Peace Not War”, and “China, Stop Poaching in Philippine Waters”.
    Organizers of the protest in Manila said similar rallies were planned at other Chinese embassies around the world on Friday as part of the “Global Day of Action against China’s Bullying in the West Philippine Sea.”

    The territorial row centrers on Scarborough Shoal, a tiny rocky outcrop in the West Philippine Sea about 230 kilometers (140 miles) from the Philippines’ main island of Luzon.

    The Philippines says the shoal is part of its territory because it falls within its exclusive economic zone.

    READ THE REST OF THE STORY AT globalnation dot inquirer dot net

    SOURCE: Agence France-Presse, 11:50 am | Friday, May 11th, 2012

  9. Was it a gaffe, a threat or a warning?

    What, Philippines belongs to China?

    What? China now claims the Philippines as part of its territory by historic right? How would the Indonesians, who got here first in 4000-3000 BC and then in 1000 BC, feel? What about the Negritos, who preceded them by 25,000 years? Do not Chinese royal court archives mention trade with Luzon and Mindanao, so there had to be natives here ahead of them? Or were the ancient Chinese fudging trade documents to conceal smuggling, or melamine in infant formula and dog food?

    China’s bold assertion was made by beauteous He Jia, news anchor for the nationally broadcast China Central Television (video grab in The STAR front page yesterday). Some say it was accidental; others, intentional. Whatever, what’s notable to the Philippines is that Ms. He looks like the lovelier Filipino radio-TV celebrity Ali Sotto. Is Chinese broadcasting aping the stylish Philippine media?

    China laying claim to the Philippines was inevitable. It was beginning to look silly in the eyes of the world, mightily taking over only a part of Philippine waters, the Scarborough Shoal. That lagoon of rocks and sandbars is submerged during high tide. That a shoal, by definition, is uninhabitable shows up China’s historic claim to be farcical. Ancient Chinese may have been smart to invent gunpowder, but they couldn’t have built communities on a spit of rocks and sand 800 miles from Hong Kong, China’s nearest point. Luzon was only 120 more miles away. So China might as well take a step farther and claim the whole Philippines, to bolster its stake over Scarborough. By owning the Philippines, China need not spend millions of dollars exploring oil in the shoal. There’s proven gas at the Batasan.

    But then, how would China impose its rule over the Philippines? Would it repopulate the 7,107 islands with Han the way it is doing in breakaway provinces like Tibet and Xinjiang, and prefectures in Sichuan and Qinghai? No need for that. Four of every five Malay-Filipinos have Chinese ancestry. (My maternal grandpa, gong gong, was Chinese, born in Cavite of parents from Fujian.) The risk is that it’s Filipinos who might repopulate China with Malay. Filipinos — taller, darker and handsomer — are more desirable.
    …

    READ the rest at the
    SOURCE: GOTCHA By Jarius Bondoc (The Philippine Star) Updated May 11, 2012 12:00 AM

  10. I cannot believe this news story that we had been “had” by the Americans, the warships we are buying have no “weapons” pala! And our officials are pleading with the sellers to put or give back the weapons of those ships we bought. Hahaha! Dyahe!

    This nation is really always at the receiving ends. Always. My Goooolie (sabi niya) !

    PNoy! Diid you know about this purchases? No weapons! Ano ito? For another price for the “guns” of those war boats? Vintage na, wala pa cannons at bala! Sling shots na lang siguro ang gamit ng mga navy personnel natin.

    Lantaka puede siguro. Bala…ay lata ng sardinas. At least pag may tama, bukol din si koh ching hua!

    • Most of the military equipment coming from the US is donated, we are not paying for it.

  11. All claims over these Islands are not resolved legally, by law, international or otherwise. China knows it has the muscles and armed force to deal with other claimants. What will stop the US by its Navy the 7th Fleet from also putting a claim over these Islands?

    The reasons advanced by China can and is logically accepted, to include even the whole Philippine Islands by increasing their “lines of demarcations” later on after it succeeds to occupy all the islands it wants. It wants everything in that area!

    Were these Islands also ceded by the US and Spain in the Treaty of Paris? I do not remember even after reading some portions of that Treat. And since, if I am correct, only the Islands of the Philippines were ceded, these unincluded Islands remains “res nullius” without an owner. USA may still claim it by “conquest” under International Laws, which it can against all other claimants. Would China believe it can challenge the US Navy? Or Vietnam? Or Taiwan? Or Malaysia? or Borneo? Or even our navy?

    A long lull if the US Navy comes into these Islands. Peace reign for the moment. The future will tell what happens next.

  12. Is Rep. Gina de VENECIA playing politics, or doing a Maria Clara of old?

    Women bridging the gap.

    Amid the brewing tension over the Panatag Islands at the West Philippine Sea, 14 members of the Association of Women Legislators Foundation, Inc. (AWLFI) of the House of Representatives went on a nine-day goodwill mission to the People’s Republic of China to honor a long-standing invitation of the Communist Party of China to exchange ideas on various women initiatives. Leading the delegation was Rep. Gina de Venecia, who said the visit was made “in the spirit of the joint declaration” signed by President Benigno Aquino III and Chinese President Hu Jintao on September 2011, declaring 2012 and 2013 as “Years of Friendly Exchanges.”
    …

    The delegation consisted of Representative De Venecia, Senior Deputy Majority Leader Janette Garin, former Deputy Speaker Daisy Avance-Fuentes, and Representatives Josefina Joson, Bai Sanda Sema, Bernadette Herrera-Dy, Mercedes Alvarez, Rachel Marguerite Del Mar, Ana Cristina Go, Linabelle Ruth Villarica, Emmeline Aglipay, Nancy Catamco, Cinchoa Cruz-Gonzales, and Abigail Faye Ferriol.

    Like a seasoned diplomat, De Venecia, seeing the conflicting positions of the Philippine and Chinese governments on the Panatag conflict, expressed that it would be to the Philippine interest to pursue the course espoused by former US Secretary of State Henry Kissinger and the late President Richard Nixon who made a landmark trip to China some 40 years ago. Kissinger had told the Chinese, “Hu Hu Jing, Hu Hui” (Mutual Respect, Mutual Benefit) in resolving conflicts.

    READ THE REST at the SOURCE: House of 14, FROM THE STANDS By Domini M. Torrevillas (The Philippine Star) Updated May 08, 2012 12:00 AM

  13. Manuel Pangilinan was ‘…asked earlier if his group was willing to deal with China despite the latter’s incursion into Philippine territory, Pangilinan said: “That is a solution. I think we should be talking to Chinese companies.”‘

    Philex eyes Chinese partner in Recto Bank

    MANILA, Philippines – The group of businessman Manuel Pangilinan is negotiating with one of China’s biggest firms for possible oil and gas exploration in Recto Bank, which is near the disputed Spratly Islands.

    Highly placed sources said Pangilinan flew to Beijing a few days ago to meet with officials of the state-owned China National Offshore Oil Corp. for a possible joint venture in Recto Bank in Western Palawan. CNOOC is China’s biggest offshore oil and gas producer.

    The Pangilinan-led Philex Petroleum is also in talks with other foreign oil industry giants for the development of the resource-rich Recto Bank. Sources also said prospects for a China project are high for Philex-controlled Forum Energy Plc.

    They also said possible joint ventures in mining were also discussed in the Beijing meeting.

    The negotiations for a possible joint gas exploration in Recto Bank came amid a standoff at the Panatag (Scarborough) Shoal off Zambales, involving Philippines and Chinese vessels.

    “We are talking about billions of dollars (of investments). You will need an international major. They have the expertise and the marketing power to place the gas,” Pangilinan, Philex chairman, earlier said. “We have talked to a number.”

    Forum Energy, a United Kingdom-based oil and gas firm, is doing exploration on Recto Bank under Service Contract 72. When asked earlier if his group was willing to deal with China despite the latter’s incursion into Philippine territory, Pangilinan said: “That is a solution. I think we should be talking to Chinese companies.”

    Forum Energy said it needs around $75 million to continue with its drilling in Recto Bank, which showed a potential of producing 16.6 trillion cubic feet of gas.

    “You will have to go to a consortium…It could be one or more oil companies that could get involved,” Pangilinan said.

    The estimated gas yield in Recto Bank is way above the 3.4 trillion cubic feet of gas in the Malampaya natural gas project in Palawan.

    Energy Secretary Jose Rene Almendras earlier said resources in the Recto Bank could last for about 100 years.

    The project covers some 8,800 square kilometers off West Palawan.

    The second phase of the SC 72 drilling will start before June.

    “We would like to stick to the work program and schedule. We would like to be able to build the resources as soon as possible,” Pangilinan said.

    He said delays might occur due to tensions between the Philippines and China.

    The rigs and survey ships are owned by other countries, many of which prefer not to be involved in territorial disputes in the region.

    Pangilinan said it would take six to 10 years to develop the area.

    Philex Petroleum, which went public in September, is a subsidiary of Philex Mining Corp., the country’s largest mining firm.

    SOURCE: By Mary Ann Ll. Reyes, The Philippine Star, Posted at 05/08/2012 7:16 AM | Updated as of 05/08/2012 7:16 AM

    • NEGOTIATION to maximize tap use of minerals such as Natural Gas Deposits in the West Philippine Sea is the most civilized arrangement between countries (i.e. Phils. & China) with competing interests in the Spratly Islands.

      The Recto Bank, near the Spratly Islands, may open up a mutually beneficial Business-Entrepreneurial Venture between countries, without resorting to primitive bullying, harassment and piracy to get its own way.

      China has the dough, the Philippines has the fuel to make bread. They can both do business, build economic ties and provide better living standards to their own respective people. RESPECT is all that is needed to start trade and commerce from these mineral deposits.

      • A win on win situation Mel Ok. Terms and condition must be properly monitored
        After reviewing if the contracts are advantageous to or Country and to the Filipinos. Fair business deal.

        • @Victin

          Tama ka rin kabayan.

          This situation can be turned around to benefit both countries, the asian region and ASEAN.

          Chinese and Filipino asians are by nature entrepreneurial. Practical – hindi init ng ulo ang gagamitin. Parehong mayabang – pero mas mayabang ang Han chinese.

          Ang magagawa ng gobyerno ng pilipinas ay patas at pantay ang contrata. Hindi ipapasubo ang bansa. Katulad ng ginawa ni GMA at mga kampon niyang pok-pok.

          Si Manuel Pangilinan, walang mawawala sa kaniya. Binata, walang anak at pamilya. May yaman, anu pa ang hahangarin niya sa buhay? Huwag sana siyang sakim. Protektahan din nawa niya ang interest ng bansa niya. May awa ang Diyos na buhay.

        • @Mel

          Personally, I don’t trust him. He better explain 1st regarding the PLDT stocks.

        • LOL!

          Ayaw mong bitawan talaga. Nagtanim ka talaga ng sama ng luob.

          LOL!

          He’s now part owner [?] of The Phil Star. Why not ask Raïssa to do an interview or a piece on that ‘cornered robbery’ type of shares buy back scheme.

          You’d never know, Raïssa already has some nuggets somewhere in her archives waiting to see the light of day.

        • @Mel

          I am not the only 1. I met some when I went to PLDT Makati office. There were lots who are senior citizens. Some came from far away provinces. What can you say about this?
          I even heard that he is gay. With some love interest in Channel 5 & new beau, a basketball player of his team. Dami kong nalaman when I made the long wait in PLDT office.
          Kaya I will be very vigilant with the contract of the oil drilling in Recto Bank. Parang “hawk eye” ika nga!

        • I heard those too.

          One time, they were rooting him for Kris A. when she was still available.

          From magazine interviews I read many years ago, I recall he only sleeps an hour to two a day. Have regular late to early morning meetings. He was very close to his mother, that he visits her almost everyday at her retirement abode. I wonder if she is still alive.

          With his personal sexual preference aside, the man is a ‘can do’ person. His rise to the corporate ladder was attributed to an Indonesian magnate who endowed MVP with utmost trust and confidence in his big business interests in the Phils.

          At one interview, the late Cory A. was highly admired by this Indonesian magnate, and MVP made it possible for him to meet Cory in person.

        • re “… Indonesian magnate who endowed MVP with utmost trust and confidence in his big business interests in the Phils.”

          MVP mourns passing of Salim

          By: Daxim L. Lucas, Philippine Daily Inquirer
          10:40 pm | Saturday, June 16th, 2012

          …

          Also called by his initials “LSL,” Salim was born in Foochin, Fujian and emigrated to Kudus, Central Java in 1938.

          His first business was coffee-making and trading, then quickly moved to importing and selling cloves for the popular Kretek cigarettes.

          “LSL was not embarrassed to admit that he has failed at least twice in his business, only to recover eventually,” Pangilinan said. “As a result of his large, asset-heavy businesses, Oom Liem is considered Indonesia’s first industrialist.”

          Apart from his success in business, however, the elder Salim was also criticized for his close ties to the late Indonesian strongman, Suharto, whom he befriended when the latter was still an officer in the Indonesian armed forces.

          After Suharto staged a successful coup d’état in 1967, Salim became a close ally of the Indonesian leader. Salim’s empire grew rapidly—at its peak, holding an estimated $20 billion in assets and employing 200,000 people in some 500 companies—until the region was hit by the 1997 East Asian financial crisis.

          [RIP]

        • His sexual orientation should not be an issue. MVP seems to be an exceptional leader who get the job done

        • @Mel

          Let’s finish 1st Corona & Scarborough Shoal. It’s more urgent than the PLDT shares. Anyway I am not selling but acquiring pa.

        • I wrote, “Chinese and Filipino asians are by nature entrepreneurial.”

          Tuloy-tuloy nawa ang supporta ni PNoy at ng kaniyang administrasyon. Dahil sana niya ang Sari-Sari Convention sa Visayas at Mindanao din.

          Hindi niyo ba alam, mas marami ang munting negosyong pa Sari-Sari o palengke kaysa sa palakihang shopping malls at kanda-siksikang bazaars?

          It is still the number one job creation and income provider in the barrios, towns, provinces, cities and metropolitan urban areas – combined.

          Role Of Sari-Sari Stores Cited

          By IRENE V. FERNANDO
          May 16, 2012, 7:18pm
          MANILA, Philippines — President Benigno S. Aquino III supports the sari-sari store sector as one of the building blocks of the country’s economy.

          In his keynote speech during the opening ceremonies of the 7th Tindahan ni Aling Puring Sari-Sari Store Convention at the World Trade Center in Pasay City yesterday, Aquino said the government recognizes the important role of micro, small and medium enterprises to the economy’s growth.

          “Hindi po matatawaran ang kontribusyon ng industriya ng mga retailers sa pambansang ekonomiya (We cannot deny the contribution of retailers industry to our economy),” Aquino said. With its presence in almost every street throughout the country, sari-sari stores have become an integral part of every Filipino’s life. It is estimated that 800,000 sari-sari stores hold a substantial portion of the Philippine retail market.

          The President said a significant chunk of the country’s GDP in 2011 actually came from MSMEs. He said that “13 percent or P1.3 trillion of the country’s GDP of P9.7 trillion last 2011 came from retail, which is composed largely of micro, small, and medium enterprises (MSMEs) or small businesses like sari-sari stores.”

          Aquino said a more convenient way of facilitating business transactions has been made possible through the Philippine Business Registry (PBR) and the Business Name Registration System (BNRS).

          The PBR integrates the services of all agencies involved in business registration, such as the Department of Trade and Industries (DTI), Securities and Exchange Commission (SEC), Bureau of Internal Revenue (BIR), Social Security System (SSS), Pag-IBIG Fund, PhilHealth, local government units (LGUs), and other permit- or license-issuing agencies.

          The BNRS, on the other hand, has been launched by DTI to maintain a nationwide registry of business names, mainly those operating on sole proprietorship.

          He also shared that the government’s SME Caravans have been through the different regions to promote entrepreneurship among Filipinos. As of April 2011, there have been 24 areas that have already been visited with 18, 000 individuals as participants.

        • erra…

          Dahil DALHIN sana niya ang Sari-Sari Convention sa Visayas at Mindanao din.

        • ‘Pangilinan flew to Beijing a few days ago to meet with officials of the state-owned China National Offshore Oil Corp. for a possible joint venture in Recto Bank in Western Palawan.’

          Where in the world is FFG(former First Gentleman [sic] M Arroyo)?

          Last week Mike Arroyo secured permission to travel, from his wife and Sandiganbayan. Reportedly he will attend an event in Tokyo and meet with Japanese investors for a hydroelectric power plant. Supposedly he will be billeted in the Imperial Tokyo Hotel. Purportedly he will proceed from there to Hong Kong for some R&R and return by May 10.

          However, breaking news from one TV network reported that the former FG has no record of entry in Japan, nor did he arrive in the hotel. Furthermore, no such event was scheduled on those dates.

          Where in the world is FFG? Brazil, Portugal, or Syria — any country without diplomatic ties and extradition agreements with the Philippines? Of course the scoop maybe a false lead since the broadsheets didn’t pick it up. Or the news may have been buried — death by unnatural causes.

          Source: The crown conspiracy, CITIZEN Y By Yoly Villanueva-Ong (The Philippine Star) Updated May 08, 2012 12:00

          Don’t be surprised if FFG Mike Arroyo detoured to pave a way or got involved in this recent, low profile dev’t. May it be his token restitution to mend his wrong former FG sin to his nation.

    • “So I go back, if we are able to exploit these resources (in a manner) that redounds to benefits for the entire region, we will be less dependent on oil from the Middle East and North Africa,” Aquino said.

      Aquino: Philippines willing to share resources but not sovereignty

      By Norman Bordadora
      Philippine Daily Inquirer
      2:25 pm | Thursday, May 17th, 2012

      MANILA, Philippines—President Benigno Aquino wants the whole region to benefit from the huge natural gas deposits in the West Philippine Sea (South China Sea) but won’t allow other countries to claim areas that are rightfully the Philippines’.

      “I am not empowered to give up any of our territory,” Aquino said during an open forum at a gathering of Wharton business school alumni in Makati City on Wednesday night.

      Aquino was reacting to a suggestion that the Philippines and China enter into a 50-50 sharing arrangement for the energy resources in various disputed areas of the West Philippine Sea.

      “Now, we have not stopped having communications with them in trying to look for the win-win situation,” the President went on. “But at the same time, you know, I am still bound by an oath that I took to defend and uphold the Constitution and enforce all of our laws.”

      “If it’s clear that we have a 200-mile economic zone, exclusive economic zone, designated by the United Nations Convention of the Law of the Sea, and both of us are parties to it, is it too much to ask that our rights are respected by our neighbors in the same token that we respect their rights?” he added.

      Aquino stressed the government’s position to have the dispute resolved diplomatically. He said the Philippines was in no position to engage China militarily.

      “We do not want to present a threat to them in any shape, manner or form, or whatsoever in terms of military action,” he said. “I keep using a joke, even if it were just a boxing match, they’re 1.3 billion and we’re 95 or 93 million. We will not prevail, and that is not the route.”

      “So I go back, if we are able to exploit these resources (in a manner) that redounds to benefits for the entire region, we will be less dependent on oil from the Middle East and North Africa,” he said.

      “President Aquino appointed Domingo Lee, his former nominee to become ambassador to China, and Cesar C. Zalamea as Special Envoys of the President to the People’s Republic of China with a term of six months each.”

      Palace defends new envoys to China

      By Willard Cheng, ABS-CBN News
      Posted at 05/17/2012 2:50 PM | Updated as of 05/17/2012 4:49 PM

      MANILA, Philippines – Amid the dispute of the Philippines and China over Scarborough Shoal, President Aquino has tapped the services of his former nominee as ambassador to China to promote the friendship between the two countries and court Chinese tourists to visit the Philippines.

      Presidential spokesperson Edwin Lacierda says the country wants to tap the other aspects of the relationship between the Philippines and China and not to let the territorial dispute affect bilateral relations.

      “We have different levels of relationship with China… and these are the levels we are emphasizing. We have the cultural, we have the business, we have tourism. We would like to explore all avenues of our relationship not only to focus on the contentious one,” Lacierda said.

      In the absence of a Philippine ambassador to China, President Aquino appointed Domingo Lee, his former nominee to become ambassador to China, and Cesar C. Zalamea as Special Envoys of the President to the People’s Republic of China with a term of six months each.

      Lee is specifically tasked to, among others:

      • “Steadfastly promote the 2012-2013 Philippines-China Years of Friendly Exchanges…;

      • “Aggressively seek out the support of the Philippine business community and the Filipino-Chinese community for the successful implementation of the 2012-2013 Philippines-China Years of Friendly Exchanges;

      • “Actively persuade greater numbers of Chinese tourists to make the Philippines their main destination for leisure and relaxation trips, pointing out the many tourist attractions and leisure activities that the islands have to offer;

      • “Explore other areas for promoting friendship and goodwill between the Philippines and China through enhanced cooperation in culture and the arts and in establishing more people-to-people exchanges…

      • “Perform such other duties enhance Philippines-China relations as may be assigned to him by the President or the Secretary of Foreign Affairs.”

      Zalamea will focus on courting Chinese businessmen to invest in the Philippines.

      “Malawak kasi po ang People’s Republic of China so we need envoys to help us along. It’s a vast country. You need people to specialize, for instance, on attracting investors. You need also another envoy to attract the tourists, for instance. So ang ginawa po natin ay nagbigay po tayo ng specific envoys to handle specific areas,” Lacierda said.

      Lee’s failure to get the nod of the Commission on Appointments on his previous appointment as ambassador to China did not deter the President from engaging his services. As special envoy, Lee does not need to undergo confirmation proceedings.

      “Because he is capable. He is in a position to attract… He’s not only involved in luring Chinese tourists [but] also to promote culture and arts. I think these are matters, which, we believe, Honorable Domingo Lee can effectively do,” Lacierda said, when asked why the President has appointed Lee.

      US sub not related to Scarborough standoff

      Meantime, the Palace stressed that the arrival of the US submarine in Subic is not related to the country’s standoff with China over Scarborough Shoal.

      Lacierda said the US had requested that the submarine be allowed to berth “for the purpose of supply replenishment and the maintenance of shipboard systems” and pointed out that the request was made on April 3 or before the standoff with China began. The Philippine Department of Defense approved the request on April 24, according to Lacierda.

      “This has nothing to do with the Panatag Shoal incident,” Lacierda said. “The request was made prior to the Panatag shoal incident so we do not put any political color here. It’s just a plain and simple supply replenishment request.”

      “It’s just a request for supply replenishment and as a strategic partner, it is but natural for us to afford them assistance,” he added.

      Lacierda stressed that the Philippines is committed to finding a diplomatic resolution to the territorial dispute with China.

      “Insofar as the Panatag standoff is concerned, we are actively seeking a peaceful resolution,” he said.

  14. @To all FilAm, @David

    Enrile: $30M US aid for PHL defense an insult
    May 6, 2012 4:49pm

    The $30 million the United States has reportedly offered to boost the Philippines’ defense capabilities is so insufficient as to be insulting, Senate President Juan Ponce Enrile said Sunday.

    http://www.gmanetwork.com/news/story/257318/news/nation/enrile-30m-us-aid-for-phl-defense-an-insult

    Senate President Juan Ponce Enrile is a major player and an insider since Pres Marcos time. So he is very credible on this and he knows what he is talking about.

    Filipinos and Pnoy should learn to bet not only inside the Philippines but also outside the Philippines.

    Pnoy should send Gen Danilo Lim immediately as ambassador to China and ask China to match and quadruple the US bid. Maybe China could help modernize the AFP and in return for China to have their fisherman fish in the Scarborough Shoal area from time to time especially during typhoon seasons.

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