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Filipino Failure: Joint Development Agreement in the Reed Tablemount

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Technical Report,01 Jul 2017,31 Oct 2017

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Naval War College Newport United States

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The Philippines will suffer negative consequences if it enters into a joint development agreement with China for oil and gas in the Reed Tablemount Bank and surrounding Spratly Islands. As the SCS regional actors look to develop abundant natural resources, including oil and gas, the competing claims have limited development of those resources. The claims have heightened military tensions and created persistent diplomatic and informational conflict. In choosing to favor China in the development of oil and gas, the Philippines yields to Chinas developing military and absolute power rather than the restraint of legality afforded through sovereignty arbitration. A JDA enables Chinese aggression and excuses its history of poor relationships relating to economic development. The difficulties the Philippines will face include implied loss of sovereignty, negative economic impact, loss of energy needed for development, and acrimonious oilgas partnership.

Subject Categories:

  • Economics and Cost Analysis
  • Fuels

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