Philippine Supreme Court Rules to Revoke China-Philippines Oil and Gas Exploration Agreement

The agreement signed between the Philippines, Vietnam and China in 2005 to facilitate joint oil and gas development in the region lapsed in 2008, and in early January 2023, Philippine President Ferdinand Marcos Jr. visited Beijing to meet Xi Jinping. The two sides decided to restart negotiations on cooperation in oil and gas development.

 Former Philippine Congressman Teodoro Casino filed a petition in court to rule on the constitutionality of this agreement. On January 10th, 2023, the Philippine Supreme Court ruled that the tripartite Agreement for Joint Marine Seismic Undertaking in Certain Areas in the South China Sea, which was signed by Philippine officials 18 years ago, should be revoked because it “”allows foreign companies to participate in the exploration”” of the Philippines’ oil and gas resources. This is contrary to the Philippine Constitution. The agreement, signed during the term of former Philippine President Gloria Macapagal Arroyo, expired in 2008.

 Cassino later tweeted that this is a warning to Ferdinand Marcos Jr not to manipulate the constitutional provision that reserves natural resources for Filipinos to exploit. Shares of several Philippine companies fell between 1.1% and 12% as a result of the fall.