Retired Supreme Court Senior Associate Justice Antonio T. Carpio cautioned that the Philippines would be “committing suicide” if it agrees to China’s terms for joint oil and gas exploration in the West Philippine Sea, stressing that such conditions violate both the Constitution and the country’s arbitral victory.
In a recent interview, Carpio laid out the legal and strategic risks of entering into agreements that effectively recognize Chinese ownership of resources within Philippine waters.
China’s Definition of ‘Joint Development’
Carpio explained that China’s concept of “joint development” is fundamentally incompatible with Philippine law.
Under China’s position:
- China owns the oil and gas
- Other countries are merely allowed to participate in development
This arrangement, Carpio emphasized, cannot be accepted because Reed Bank lies within the Philippines’ Exclusive Economic Zone (EEZ), where resources are reserved exclusively for Filipinos under the Constitution.
Violation of Constitution and Arbitral Award
Carpio stressed that agreeing to China’s terms would:
- Violate the Philippine Constitution
- Undermine the 2016 arbitral ruling
- Reverse gains already secured under international law
He pointed out that previous negotiations collapsed after China demanded the removal of key provisions affirming:
- Philippine ownership of oil and gas
- Governance under Philippine law
“These are non-negotiable,” Carpio emphasized, noting that deleting them would effectively concede sovereign rights.
‘Suicide’ for Philippine Sovereignty
Carpio did not mince words in describing the consequences.
“If we accept their terms, they have already won,” he said, warning that such an agreement would amount to surrendering ownership of resources within Philippine territory.
“That will be committing suicide.”
What a Lawful Agreement Looks Like
Carpio clarified that joint exploration is not entirely off the table—but only under strict conditions.
A valid arrangement must:
- Follow the Philippines’ service contract system
- Recognize that oil and gas belong to the Philippines
- Be governed by Philippine law
In this framework, foreign companies—like Chevron or Shell—may participate, but only as contractors, not as owners of the resources.
Pattern of Last-Minute Changes
Carpio warned that China has shown a consistent pattern in negotiations:
- Initial agreement to acceptable terms
- Followed by last-minute demands to alter key provisions
He expressed doubt that China would accept the original terms without attempting to modify them again.
No Abandoning Legal Ground
Carpio urged the government to remain firm, emphasizing that:
- The Philippines must follow its Constitution
- It cannot abandon the arbitral award
- It must reject any agreement that compromises sovereign rights
He also noted that a previous joint marine seismic undertaking during an earlier administration was declared unconstitutional, reinforcing the legal limits on such agreements.
Alternative: Secure Energy Elsewhere
Given current global uncertainties, Carpio advised that joint exploration with China is not a short-term solution.
He explained that:
- Developing Reed Bank would take years
- It cannot address immediate energy needs
Instead, the Philippines must look to external sources of oil and gas to address present supply challenges.
Conclusion
Carpio’s warning is clear: any agreement that compromises Philippine ownership of its resources is not cooperation—it is concession.
The path forward, he emphasized, lies in:
- Upholding the Constitution
- Defending the arbitral ruling
- Ensuring that Philippine resources remain under Philippine control
Anything less, he warned, would come at a cost the country cannot afford.