UK firm to continue exploring Reed Bank despite PHL-China tension

The UK-based contractor conducting the gas exploration in the Recto Bank basin off Palawan province will not stop its operations despite the growing tension between the Philippines and China over the disputed Spratlys Islands. “Walang balak umatras ang British company na galugurin ang Recto Bank because it is not situated in the Spratly Group of Islands," said Jose Raymund Apostol, president of Forum Energy Philippines Corp., in an exclusive report on GMA News’ “24 Oras" on Tuesday. Forum Energy Corp. is the local arm of Forum Energy Plc., which entered into a contract with the Philippine government to explore the Recto Bank for natural gas. Recto Bank — known in international maps as Reed Bank — is located east of the reputedly oil-rich Spratlys Islands, which are claimed in whole or in part by the Philippines, China, Malaysia, Brunei, and Taiwan. Apostol said Recto Bank is located only 80 nautical miles off Palawan but is 575 nautical miles from Hainan Island in China. The Philippine government said it is well within 200 nautical miles exclusive economic zone set under the United Nations Convention of the Laws of the Sea (UNCLOS). “Ang position ng government dito is they will not sign the contract with us as contractors kung alam nila hindi sa Pilipinas [ang Recto Bank]," Apostol pointed out. Last February, two Chinese patrol vessels allegedly harassed an exploration vessel of Forum Energy at the Reed Bank. “Pinahinto yung operations namin. Huminto kami to get clearance from the government. Nung nag-clear na ‘yung dagat, tinuloy namin [‘yung operations]," Apostol said.
Recto Bank has been subject of numerous exploration campaigns in the past. The first petroleum contract in the area was awarded by in 1975. Studies have shown that the Recto Bank could contain some 0.1 trillion cubic meters (3.4 trillion cubic feet) of gas and potentially 440 million barrels of oil. It is believed to be a site with much bigger oil and gas deposit than the adjoining Shell-operated Malampaya gas field, the country’s only gas production field to date. President Benigno Aquino III shares the same views with Energy Forum’s Apostol. “Why should there be a dispute if we are all conforming to international law?" he said at a press briefing in Malacañang Tuesday afternoon. However, Aquino pointed out that the Philippines still does not want hostilities with China despite having the United States on its side. At a gathering at the Makati Shangri-La Hotel, US Ambassador Harry Thomas Jr. expressed support for the Philippines stance on the West Philippine Sea (South China Sea) dispute. “I want to assure you that on all subjects, we, the United States, are with the Philippines. The Philippines and the United States are strategic treaty allies. We are partners. We will continue to consult and work with each other on all issues including the South China Sea and Spratly Islands," Thomas said. Thomas’ statement was loudly applauded by the crowd that included Aquino, Energy Secretary Rene Almendras, other government officials, and energy stakeholders. — KBK, GMA News