Asserting our sovereignty, energy is at stake

Around this time six years ago, on July 12, 2016, the Arbitral Tribunal at the Hague handed down its landmark ruling affirming the rules-based international order governing the South China Sea and upholding the country’s sovereign rights and jurisdiction in its exclusive economic zone (EEZ).

President Marcos vowed to assert the arbitral award, saying “we have a very important ruling in our favor. We will use it to continue to assert our territorial rights. It’s not a claim, it is already our territorial right. We will not allow a single square millimeter.”

Philippine Ambassador to the United States Jose Manuel “Babe” Romualdez said in a forum marking the sixth year of the Arbitral Award: While I believe that diplomacy is still the best way to find a peaceful resolution to the contentious issues surrounding the Indo-Pacific, it is equally important for us to be able to defend ourselves if a situation such as an intrusion in our exclusive economic zone occurs.

These are all welcome developments and we must keep a close watch on how the new administration’s words would translate into action.

This could mean resuming the oil and gas exploration in the area.

In a recent lunch, Ambassador Babe also said that there are US firms that are interested in investing in oil and gas exploration in the West Philippine Sea, but are waiting for a clear policy governing the activity.

No consent needed

For his part, retired Justice Antonio Carpio said we do not need the consent of China – which refuses to acknowledge the Arbitral Award – to explore our natural resources in the West Philippine Sea.

“To assert or enforce the Arbitral Award the Philippines does not need the consent or permission of China. The Arbitral Award, by itself, affirms that under UNCLOS (United Nations Convention on the Law of the Sea) the Philippines can exclusively exploit the natural resources, including the oil and gas, in the Philippine exclusive economic zone in the West Philippine Sea without interference from any other coastal state.

“To repeat, the Philippines does not need China’s consent or permission to assert or enforce the Arbitral Award,” the retired magistrate said on July 16, 2022 at the webinar titled Six Years after the Arbitral Award: Developments in the South China Sea, sponsored by the National Youth Movement for the West Philippine Sea.

Justice Carpio said that prior to the Arbitral Award, there was a legal question as to which country owned the natural resources, including the oil and gas, in the West Philippine Sea enclosed by China’s nine-dash line.

“The Arbitral Award provides for that final and definitive legal clarity. Now, a service contractor knows that if it extracts oil and gas for China in the West Philippine Sea, the Philippines can sue the service contractor in third countries where it has assets, for stealing the oil and gas belonging to the Philippines,” Justice Carpio said.

Not a piece of paper

It’s certainly not a piece of paper, the retired justice said of the landmark Arbitral Award, and calling it as such – as the Chinese have done – is “dangerously naive.”

Justice Carpio said the Philippines could follow in the footsteps of Malaysia, which sent its Petronas-commissioned survey ship West Capella in May 2020 to explore in its exclusive economic zone off the coast of Borneo in an area falling within China’s nine-dash line.

China warned Malaysia not to proceed with the exploration, but Malaysian Coast Guard and Navy vessels accompanied the West Capella and protected it until it completed its exploration work.

In mid-2021, Indonesia also sent its drilling ship to drill test wells in its EEZ within the area encompassed by China’s nine-dash line.

“The Indonesians, declaring that they were drilling in an area where they have sovereign rights, proceeded with, and completed their drilling. China failed to stop the Indonesians,” Justice Carpio said.

In contrast, the Philippine government has suspended exploration work in the West Philippine Sea. Forum Energy, the service contractor in the Reed Bank, has been ordered not to send its survey ship to the area. It has been like this for years now – before and even after the Arbitral Award.

Justice Carpio said the country’s energy crown jewel, the Malampaya facility, would soon be depleted and the only possible replacement is Reed Bank in the West Philippine Sea.

“Without Reed Bank, the Philippines will have to import LNG – liquified natural gas – to feed its gas-fired power plants in Luzon. This will send our energy costs, already the highest in Asia, soaring through the roof, burdening the consuming public and driving away potential investors,” he said.

Against this backdrop, let’s not waste the landmark victory we achieved from the Permanent Court of Arbitration.

Given our depleting energy resources, our country must act swiftly enough to find new wells. The Department of Energy must act on this fast because we need all the new potential energy resources we could find.

West Philippine Xi These new wells may just be in the West Philippine Sea, which is ours and not China’s. As one reader said, this is not the West Philippine Xi. Iris Gonzales’ email address is eyesgonzales@gmail.com. Follow her on Twitter @eyesgonzales. Column archives at eyesgonzales.com