Philippines to Bid For Three Oil, Gas Blocks in South China Sea

Philippines will most likely bid for oil and gas contracts in South China Sea despite recent tensions with China over conflicting territorial claims in those waters.

The three blocks in the South China Sea, off the coast of the western Philippine island of Palawan, are believed to be the most promising for oil and gas deposits, said Energy Undersecretary Jaime Layug, AFP reported.

"All reserves in that area belong to the Philippines. We will only offer areas within our exclusive economic zone," he said at the sidelines of an energy forum in Manila.

The area, known as the northwest Palawan basin, is just beside the Philippines' existing natural gas fields, which already provide 40 percent of the electrical power of the main Philippine island of Luzon, said Layug.

Tensions between the Philippines and China have recently risen due to conflicting claims over parts of the South China Sea.