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The Philippines has invited foreign investors to explore possible fuel deposits in two offshore areas near the West Philippine Sea (South China Sea) despite a protest from China, which also claims the territory.
 
Energy Secretary Jose Almendras yesterday said the areas northwest of Palawan island are in Philippine territory and are two of 15 areas nationwide being offered to foreign investors for oil and gas exploration.
 
The Chinese embassy last year protested the plan to invite foreign companies to explore in the two areas, saying they were part of the South China Sea region that falls under its sovereignty.
 
Almendras said that the government would start awarding exploration contracts to some companies next month, but did not say whether the permits would include the two areas claimed by China.
 
Companies are allowed to submit pre-qualification documents until tomorrow.
 
The Department of Energy (DOE) will let the Department of Foreign Affairs (DFA) deal with diplomatic issues.
 
"I am sure it will have diplomatic complications, which I am sure the DFA will be able to handle," Almendras said. "As agreed, the DFA takes the lead in all the diplomatic issues."
 
Exploration of Reed Bank, near the contested territory, is still being conducted by Forum Energy Plc, a UK-based oil and gas firm controlled by Pangilinan-led Philex Petroleum Corp.