Philex Waiting for Government Cue on Oil, Gas Exploration in South China Sea

Philex Petroleum Corp. is looking for government cue regarding oil and gas exploration in South China Sea.

This development comes on the heels of a decision by the Permanent Arbitration Court in The Hague, that China's claim of historic rights to resources in the waters of the South China Sea was "extinguished" as it was incompatible with the exclusive economic zones provided under the United Nations Convention on the Law of the Sea, GMA News reported.

“I think we have to study ourselves the decision and, of course, we have to take our cue from the government," Philex Petroleum Chairman Manuel V. Pangilinan said Wednesday.

"We don’t want to move without the government guiding us on what to do,” Pangilinan emphasized.

Philex Petroleum, through London-based subsidiary Forum Energy Plc, was in talks with China National Offshore Oil Corporation (CNOOC) on developing a part of the Reed Bank — a vast offshore area claimed by both China and the Philippines.

In its ruling, the arbitration court noted that China violated Philippine sovereign rights to the 200-nautical mile exclusive economic zone when Beijing blocked fishing and oil exploration in the area.