Philex Mining Corp., which controls rights to explore oil and gas resources in disputed waters off Palawan, was waiting for guidance from the Philippine government on their next step after an international court denied China’s claims to most of the West Philippine Sea.
Philex chair Manuel V. Pangilinan said the group would still need to study the decision of the Permanent Court of Arbitration in the Hague, adding that “we have to take our cue from the government.”
The statement comes as diplomacy was urged between China, the Philippines and other regional neighbors with similar territorial claims, like Indonesia and Vietnam. Following the release of the decision early this week, China said it would ignore the ruling and vowed to protect its sovereignty over the West Philippine Sea, international reports showed.
“We don’t want to move without the government guiding us what to do,” Pangilinan told reporters on the sidelines of a Smart Communications event late Wednesday. Pangilinan is also chair and CEO of PLDT, the country’s biggest telecommunications company, and owner of Smart.
Pangilinan said the news was nevertheless “positive” for the country.
Philex Mining controls Forum Energy Ltd., which has a 70-percent operating interest in SC 72 Recto Bank, also known as Reed Bank, that covers the Sampaguita natural gas discovery off West Palawan.
Forum is 67.19 percent owned by Philex Petroleum, which is controlled by Philex Mining.
The Sampaguita prospect is estimated to hold up to 20 trillion cubic feet of natural gas.
Moving forward, Pangilinan said they may still need to engage a foreign partner, given the potential scale of the project.
“I think we would need a foreign partner, assuming there’s gas there,” he said.
Philex was in earlier talks with China’s CNOOC for a possible joint venture.
Pangilinan said Wednesday there had been no further negotiations with CNOOC since the Philippines challenged China’s claim in 2013, when it filed a motion for arbitration in a UN tribunal.
Forum suspended all exploration work at SC 72 last year with the government’s consent due to the territorial dispute with China. Philex Petroleum said the so-called sub-phase of SC 72 had been put on hold “until further notice.”
The terms of the second sub-phase and all subsequent sub-phases will be extended, Philex Petroleum’s 2015 annual report showed.