Philippines Aims to Drill in South China Sea

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http://www.voanews.com/content/philippines-aimes-to-drill-in-south-china-sea-mid-territorial-row/1589996.html


Philippine Foreign Affairs Secretary Albert Del Rosario speaks during a media briefing at the foreign affairs headquarters in this picture provided by the Department of Foreign Affairs in Manila January 22, 2013.


MANILA — This week, the Philippines announced it will take China to an international arbitration tribunal because of Beijing's claim of nearly the entire South China Sea. The years-old squabble has long deterred most oil and gas prospectors from the region - but not all of them. A Philippine company is hoping to work with a Chinese state-owned entity to drill for natural gas in the disputed waters.

On hold

Forum Energy is stuck in a holding pattern. The British-based company, which is majority-owned by a Philippine entity, had hoped to start drilling for natural gas off Reed Bank in the South China Sea, but it has not gotten government approval.

Forum began preliminary work to assess the area's potential reserves, but in early 2011 workers said they were chased away by Chinese vessels. More than five years ago this area showed a potential 3.4 trillion cubic feet of gas and possibly 10 trillion more.