Philippines' Oil Still In Troubled Waters After South China Sea Ruling

"It's a matter of national importance. We don't want to move on our own without guidance from the government," Philex Chairman Manuel Pangilinan told reporters.

"We will need a partner ... no local company has the expertise that we need."

Department of Energy spokesman Felix William Fuentebella said there were no immediate plans to lift the suspension as the department awaited guidance from new President Rodrigo Duterte.

"The moratorium stays. We are exploring ways to resolve the conflict peacefully and we follow the lead of the President," he said.

Manila and Beijing have both expressed a desire to resume talks, but the Philippines says it could not accept China's pre-condition of not discussing the ruling.

Concession to Share?

Without an agreement between Manila and Beijing, finding development partners would be difficult, said Andrew Harwood, a Southeast Asia upstream analyst at Wood Mackenzie.

"There has to be some softening of Beijing's stance before any companies would be willing to go and drill in any of the disputed areas," he said.

China has involved energy businesses in diplomatic disputes previously.

In May 2014, state-owned China National Offshore Oil Corporation (CNOOC) moved its Haiyang Shiyou 981 oil rig into Vietnam's Exclusive Economic Zone, guarded with a flotilla of coastguard ships. In a tense standoff, Vietnam protested vehemently and sent ships to try to disrupt operations.

Surveying on the disputed Reed Bank concessions began in 2003 under a Joint Marine Seismic Undertaking (JMSU) between Philippine state-owned PNOC Exploration Corp, CNOOC and state-owned PetroVietnam. Manila did not extend the agreement when it lapsed in 2008 after criticism from within the Philippines that the deal compromised its sovereignty.

The pact also caused a diplomatic upset in Southeast Asia as it was seen as undermining regional solidarity against an assertive China.

But some Filipino oil executives think teaming up again with CNOOC could solve problems on both the diplomatic and logistical fronts.

Pangilinan of Philex said he would not close the door on a China JV, while Philex President Daniel Stephen Carlos said a "farm-in" type deal was also being looked at.

Rufino Bomasang, a former Philippines energy ministry undersecretary and current executive chairman of Otto Energy Investments, an oil and gas exploration and production company, said restarting the JMSU with CNOOC should be considered.