The Supreme Court in the Philippines on Tuesday stated the country’s 2005 energy exploration agreement with Chinese and Vietnamese firms was illegal. The court declared in the ruling that the constitution does not allow foreign entities to exploit natural resources in the Philippines. The agreement had expired in 2008, but the decision could complicate efforts by China to revive energy exploration talks with the Philippines.
The court did not give an explanation for why the ruling was declared 14 years after a petition was filed. There have been tensions between China and the Philippines over sovereignty and natural resources in the South China Sea. Efforts to find a way to work together on energy exploration repeatedly hit roadblocks. China claims jurisdiction over most of the South China Sea and the risk of energy activities being disrupted have made it hard for the Philippines to find foreign partners in its drive to exploit its energy resources. The court ruling ended a deal between state-run Philippines National Oil Company, China National Offshore Oil Corp and Vietnam Oil and Gas Corporation. The deal covered 142,886 square kilometers of the sea and was ruled illegal due to stipulations in the constitution that say the Philippines state must control and supervise these activities and the companies involved must be majority Philippine owned.
Read More: Philippine top court voids old South China Sea energy deal
