The second phase of the Joint Marine Seismic Undertaking in the South China Sea (JMSU) is now underway. This joint study, which involves the national oil companies of the Philippines, China and Vietnam represented by PNOC Exploration Corporation, China National Offshore Oil Corporation (CNOOC) and Vietnam Oil and Gas Corporation (PetroVietnam) respectively, took effect in July 2005 and aims to assess the petroleum potential of a certain area in the South China Sea. The agreement has a 3- year term covering an area of 142,886 km 2 located in the contested waters west of Palawan. The JMSU will only entail seismic acquisition, processing and interpretation. All other activities other than the seismic study will be subject to new negotiations and possibly new Agreements among the three companies.

The three companies’ decision to proceed to the 2 nd phase was prompted by the encouraging results of the 1 st phase. The seismic acquisition survey has a 12,000 km program, which is currently on-going. The survey started in October 10, 2007 and around 4,500 kms has already been acquired. The seismic survey is expected to be completed by the first quarter of 2008, after which, the data will be processed in Vietnam and interpreted in Manila.

The JMSU is considered a big step towards transforming a previous area of conflict into an area for possible cooperation and mutual benefit. The agreement is however designed to be commercial in nature and does not affect territorial claims of the respective countries of the area.

See related information.

http://www.pnoc-ec.com.ph/jmsu.html