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SZ China Natural Gas Bi-weekly Report Feb 16 - Feb 29,2012
[Monday, Apr. 2, 2012] PRINT EMAIL FAV PDF
 
Conflict Looms In South China Sea Oil, Gas Search
 
The Philippines said Feb 29 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 (300-kilometer) exclusive economic zone.
 
Chinese foreign ministry spokesman Hong Lei said in Beijing on Feb 28 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.
 
Potential investors have not raised China’s claim to the territory as a concern, but the Philippines has taken steps to ensure the security of would-be prospectors.
 
Despite China’s claim, the Philippines considers the two offshore exploration areas part of Manila’s regular territory because of its proximity to the country compared with Beijing, which is hundreds of miles (kilometers) away.
 
China claims virtually the entire South China Sea on historical grounds and has not responded to a Philippine government invitation to bring the disputes before the United Nations for arbitration.
 
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