Press Release
July 21, 2022

Padilla Resolution: PH-China Should Resume Talks for 'Joint' Oil-Gas Development in WPS

To address the problems caused by skyrocketing prices of oil due to international developments such as the Russia-Ukraine conflict, the Philippines and China must resume bilateral talks for cooperation on oil-gas development in the West Philippine Sea.

Sen. Robinhood "Robin" C. Padilla stressed this in Senate Resolution No. 9, where he cited a Memorandum of Understanding on Cooperation on Oil and Gas Development between the Philippines and China on Nov. 20, 2018.

"Now therefore, be it resolved, as it is hereby resolved, urging President Ferdinand R. Marcos Jr. to resume the bilateral talks with the People's Republic of China for the purposes of cooperation on oil and gas development in the West Philippine Sea," Padilla said in his resolution.

"The Philippines requires a long-term strategy to resolve its oil dependency from foreign sources as the country is vulnerable to the negative effect of the skyrocketing oil prices dictated by the world market's reaction to the Russia-Ukraine conflict," he added.

Padilla pointed out the Philippines and China understand that the MOU - which former Foreign Affairs Secretary Teodoro Locsin Jr. recently announced had been terminated - does not pose any derogation to the Philippines' assertion of its sovereign rights in the West Philippine Sea.

"The parties further understand that the MOU shall not be prejudicial to 'respective legal positions' which 'does not create rights or obligations under international or domestic law' and as such, there is no derogation of the Philippines' assertion of its sovereign rights in the West Philippine Sea," he said.

Also, he said the execution of the MOU is a "valid exercise of the executive powers of the President" under Sec. 1, Art. VII of the Constitution.

Padilla added Sec. 2 Art. XII of the Constitution allows the Philippines to "directly undertake to or enter into co-production, joint venture or production-sharing agreements on petroleum and other mineral oils and all forces of potential energy."

"The new administration has the opportunity to resume the bilateral talks with the People's Republic of China for purposes of cooperation in the WPS on gas and oil development without bargaining the sovereign rights of the Philippines on the disputed territories therein," Padilla pointed out.

"In view of the gains attained from the MOU where the GRP and PRC cooperated on the terms provided therein on the gas and oil development in the WPS, the new administration can further explore these common interests of cooperation to resolve the country's oil dependency from foreign countries," he added.

Meanwhile, Padilla filed Senate Bill 229 seeking to suspend excise taxes on unleaded premium gas, regular gas and diesel oil, to address the effects of rising oil prices.

Under the bill that seeks to amend Section 148 of the National Internal Revenue Code, the excise tax for these products will be automatically sususpindihin if the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) will reach or exceed US$80 per barrel in three months.


Resolusyon Para Matuloy ang PH-China 'Joint' Oil-Gas Development sa WPS, Ihinain ni Robin

Para matugunan ang problemang dulot ng pagtaas ng presyo ng langis dahil sa pandaigdigang pangyayari tulad ng giyera ng Russia at Ukraine, dapat ituloy ng Pilipinas at Tsina ang pag-uusap para sa joint oil-gas development sa West Philippine Sea.

Iginiit ito ni Sen. Robinhood "Robin" C. Padilla sa kanyang Senate Resolution No. 9, kung saan nabanggit nito ang Memorandum of Understanding on Cooperation on Oil and Gas Development ng Pilipinas at Tsina noong Nobyembre 20, 2018.

"Now therefore, be it resolved, as it is hereby resolved, urging President Ferdinand R. Marcos Jr. to resume the bilateral talks with the People's Republic of China for the purposes of cooperation on oil and gas development in the West Philippine Sea," ani Padilla sa kanyang resolusyon.

"The Philippines requires a long-term strategy to resolve its oil dependency from foreign sources as the country is vulnerable to the negative effect of the skyrocketing oil prices dictated by the world market's reaction to the Russia-Ukraine conflict," dagdag ng mambabatas.

Ayon kay Padilla, hindi makapipinsala ang MOU - na ayon sa dating Foreign Affairs Secretary Teodoro Locsin Jr. ay terminated na - sa mga "legal positions" ng Pilipinas, kasama ang sovereign rights nito sa West Philippine Sea.

"The parties further understand that the MOU shall not be prejudicial to 'respective legal positions' which 'does not create rights or obligations under international or domestic law' and as such, there is no derogation of the Philippines' assertion of its sovereign rights in the West Philippine Sea," aniya.

Dagdag ni Padilla, ang pagpapatupad ng MOU ay sang-ayon sa "valid exercise of the executive powers of the President" sa ilalim ng Sec. 1, Art. VII ng Saligang Batas.

Ayon din sa kanya, pinapayagan ng Sec. 2 Art. XII ng Saligang Batas ang "co-production, joint venture or production-sharing agreements on petroleum and other mineral oils and all forces of potential energy."

"The new administration has the opportunity to resume the bilateral talks with the People's Republic of China for purposes of cooperation in the WPS on gas and oil development without bargaining the sovereign rights of the Philippines on the disputed territories therein," ipinunto ni Padilla.

"In view of the gains attained from the MOU where the GRP and PRC cooperated on the terms provided therein on the gas and oil development in the WPS, the new administration can further explore these common interests of cooperation to resolve the country's oil dependency from foreign countries," dagdag nito.

Samantala, naghain ng Senate Bill 229 si Padilla na nagmumungkahing suspindihin ang excise tax sa unleaded premium gas, regular gas at diesel oil para tugunan ang mataas na presyo ng langis.

Ayon sa panukalang batas na aamyendahan ang Section 148 ng National Internal Revenue Code, ang excise tax sa naturang mga produkto ay susupindihin kung ang average Dubai crude oil price base sa Mean of Platts Singapore (MOPS) ay aabot o lalampas sa US$80 per barrel sa tatlong buwan.

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