6-7-2023 (MANILA) The Supreme Court (SC) has delivered its final verdict on the 18-year-old joint oil and gas exploration deal between the Philippines, China, and Vietnam, declaring it unconstitutional. Associate Justice Samuel Gaerlan authored the decision, in which the SC denied the government’s motion for reconsideration to overturn the ruling that deemed the Joint Marine Seismic Undertaking (JMSU) unconstitutional.
The SC, in a briefing on the decision, concluded that the motion lacked merit as it essentially rehashed the arguments already addressed in the previous ruling. The JMSU’s objective, as stated in its Fifth Whereas Clause, involves joint research of petroleum resource potential, clearly indicating exploration activities.
The Court dismissed the respondents’ contention that the JMSU did not involve exploration by challenging the definition of “exploration” under Republic Act No. 387, arguing that it was superseded by Presidential Decree No. 87, also known as the Oil and Exploration and Development Act of 1972. However, the Court emphasized that PD 87 neither provides a contradictory definition nor defines exploration itself.
The case originated from a legal action filed in 2008 by former Bayan Muna party-list representatives Satur Ocampo, Teddy Casiño, and other former lawmakers. They challenged the constitutionality of the JMSU, citing a violation of Article XII Section 2 of the 1987 Constitution, which governs national economy and patrimony. According to this provision, the exploration, development, and utilization of natural resources must be under the full control and supervision of the state.
The petitioners further argued that the JMSU was illegal due to the involvement of China National Offshore Oil Corporation (CNOOC) and Petrovietnam, foreign corporations wholly owned by China and Vietnam, respectively. This violated the constitutional provision reserving the exploration, development, and utilization of natural resources exclusively for Filipino citizens or corporations and associations in which at least 60 percent of the capital is owned by Filipino citizens.
The respondents, including former President Gloria Macapagal-Arroyo and several officials from her Cabinet, contended that Article XII Section 2 of the Constitution did not apply as it pertained to the exploration, development, and utilization of natural resources, whereas the JMSU only covered pre-exploration activities.
