Vietnam hopes to join RP in exploration of South China Sea

By LENIE LECTURA
TODAY Reporter
Thursday, September 16, 2004 10:59 PM

Vietnam state firm PetroVietnam is interested to pursue exploration activities in the South China Sea if the three-year research to be conducted by the Philippines and China state firms confirms the existence of petroleum resources in the area.


“PetroVietnam has sent signals to the Department of Foreign Affairs that they would like to take part in the undertaking. They would like to know what the agreement is and appropriate discussions are being arranges,” newly appointed Philippine National Oil Co. (PNOC) president Eduardo Mañalac said in a press briefing Thursday.


The PNOC and China National Offshore Oil Corp. (CNOOC) have agreed to conduct a joint preexploration study solely to collect, process and analyze seismic data in areas in the South China Sea, including the controversial Spratlys. The two firms will equally share expenditures for the undertaking estimated to cost $7.5 million.


“Should PetroVietnam formally express interest in participating in the undertaking, PNOC and CNOOC will open discussions for its participation under terms and conditions mutually acceptable to PNOC and CNOOC,” the PNOC official said.


Mañalac said any definitive agreement for further cooperation shall be subject to future discussions since the one signed by the Philippines and China last only provides a framework for the conduct of the study.


“PNOC and CNOOC have no right to drill and explore the area if we do find petroleum resources there. The process is that they have to apply with the government for a petroleum contract. The government then will discuss how to craft a definitive agreement subject to future negotiations,” Mañalac explained.


If PNOC and CNOOC will end up conducting a joint exploration in the area, Mañalac said both countries will have to equally share the cost, which is estimated to reach as much as $25 million.

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