President Ferdinand “Bongbong” Marcos made an inaccurate reference to issues in the Reed Bank (Philippine name: Recto Bank) in response to a question about the impending depletion of the Malampaya gas field at an international leadership forum in Washington, D.C.
STATEMENT
Speaking at the Center for Strategic and International Studies Southeast Asia Program, Marcos was asked about the “biggest immediate need for the Philippines to address the impending loss of [the] Malampaya field in 2027.”
He answered that the only way to resolve “outstanding issues in the Malampaya gas field” is to continue negotiating with China:
“But the Malampaya fields, the natural gas fields that lie within our baselines and within our exclusive economic zone and that again is being questioned in certain cases, certain areas by China.”
Source: Center for Strategic & International Studies, A Conversation with President Ferdinand Marcos Jr. of the Philippines, May 4, 2023, watch from 39:49 to 40:26
Marcos added:
“China claims certain areas of the sea, the nine-dash line, and covers just about the entire West Philippine Sea. We, on the other hand, have established our baselines, which have been recognized and accredited by UNCLOS. And therefore, there is that conflict.”
Source: watch from 40:40 to 41:02
The Presidential Communications Office also used Marcos’ inaccurate statement in a May 5 press release.
FACT
Marcos confused Reed Bank with Malampaya.
In a message to VERA Files Fact Check, international law expert Romel Bagares said Reed Bank “has been adjudged by the South China Sea Arbitral Award to be part of the Philippine Exclusive Economic Zone.”
Malampaya, situated in offshore northwest Palawan, began commercial operations as early as 2002 through Service Contract (SC) 38. It is the primary source of non-renewable natural gas in the country, powering about 40% of Luzon’s energy needs during its peak.
With the expiration of its contract in 2024, the Malampaya consortium of Prime Infrastructure Capital Inc. (Prime Infra), Udenna Corp., and state-run Philippine National Oil Co.-Exploration Corp. hopes to extend its life by “expanding gas production” in the area.
Read FACT SHEET: Four things you need to know about Malampaya
On the other hand, Forum Energy Ltd. operates the Reed Bank concession of SC 72, an exploration project in the West Philippine Sea, west of Palawan Island and southwest of Malampaya. The Sampaguita Gas Field is reported to have about 3.1 trillion cubic feet of gas reserves.
SC 75, also in Reed Bank, was awarded to PXP Energy Corp. in December 2013. It covers an area of 6,160 square kilometers in the offshore northwest Palawan basin. The project was intended to replace Malampaya when it runs dry, but drilling in the area was suspended in 2022 because of continued objections from China which claims the area.
