Philippines’ Supreme Court says 2005 oil exploration deal with China, Vietnam is unconstitutional

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Philippines’ Supreme Court says 2005 oil exploration deal with China, Vietnam is unconstitutional
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The court rules that the deal violated the 1987 Constitution that states the exploration, development and utilisation of the country’s natural resources shall be under the full control and supervision of the state. Read more at straitstimes.com.

MANILA – The highest court in the Philippines on Tuesday declared as “unconstitutional and void” a 2005 exploration agreement in the South China Sea involving oil companies from the Philippines, China and Vietnam.

An initial version of the deal signed in September 2004 was just between the Philippines and China. Vietnam protested and was included in the 2005 JMSU. The three countries gathered pre-exploratory seismic data on possible oil reserves under the JMSU. But the deal ended in June 2008, a month after the petition against it was filed.

“That the Parties designated the joint research as a ‘pre-exploration activity’ is of no moment. Such designation does not detract the fact that the intent and aim of the agreement is to discover petroleum, which is tantamount to exploration,” said the court.

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