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Philippines' PXP Energy in talks with CNOOC on South China Sea development

Philippines' PXP Energy in talks with CNOOC on South China Sea development

Beijing claims historical rights to vast swathes of the South China Sea, including islands, reefs and atolls in the Spratlys. (Photo: AFP/TED ALJIBE)

MANILA: The Philippines' PXP Energy Corp said it was in ongoing negotiations with China National Offshore Oil Corp (CNOOC) relating to a memorandum of understanding between Manila and Beijing on joint oil and gas development in the South China Sea.

In a market disclosure, PXP said on Monday (Oct 19) the talks were being handled by Forum (GSEC 101), a subsidiary of its unit Forum Energy, but the parties had yet to agree on any disclosable definitive agreement.

In what it described as a unilateral decision, Manila has lifted a six-year-old moratorium on oil and gas exploration in the disputed territory in the waters believed to be rich in energy and marine resources, a move Beijing did not oppose.

China asserts sovereignty over almost all of the South China Sea, but some Southeast Asian countries such as the Philippines have contesting claims. 

Source: Reuters/kv

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