Is Joint Development an Option as Tensions Mount in South China Sea?
“The thrust of my proposal is to shift the focus from settling territorial disputes to jointly developing resources. Although sovereignty cannot be divided, resources can still be shared … with the SCSPI, I am again calling upon all parties to … turn what seems like a mission impossible into the eminently possible,” Ma reiterated in a June 11 article he wrote in The Wall Street Journal.
Ma modelled the SCSPI on the East China Sea Peace Initiative which Taiwan signed with Japan in 2013 covering 27,027 square miles of contested waters, where both countries shelved their dispute and agreed to share resources – largely fisheries – in the area.
However, the situation in the South China Sea is more complex. The region is home of major transportation routes, where $5 billion of sea-borne trade passes through annually, Reuters said June 26. In addition, South China Sea has abundant fisheries and energy resources, with the U.S. Energy Information Administration estimating proved and probable oil reserves at approximately 11 billion barrels, while natural gas reserves stood at around 190 trillion cubic feet (Tcf).
“Joint development is the best solution forward as the unilateral attempts to explore the oil and gas resources by competing claimants such as China, Vietnam and the Philippines have only resulted in rising and confrontation at sea,” Dr. Len explained.
Working together to jointly develop oil and gas resources is not an alien concept in the South China Sea. China, the key player in the regional spat, has worked with its Southeast Asian neighbors previously on petroleum exploration in the disputed area. One of the projects included CNOOC and Vietnam National Oil and Gas Group (PetroVietnam), with both firms conducting joint explorations in 2006 in Gulf of Tonkin, located north of the Paracel and Spratly Islands, in which they failed to find commercial reserves despite carrying out a 3D seismic survey and drilling one well.
“However, for joint development to take place, the various governments must be prepared to compromise during negotiations. This will be difficult considering the domestic political constraints the politicians faced,” Dr. Len commented.
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