Philippines to set up radar stations in South China Sea
The Philippines will buy helicopters and build radar stations to strengthen its defence of oil and gas assets located near an area of the South China Sea also claimed by China, a step that may annoy Beijing, Reuters reports. Budget Secretary Florencio Abad said in a statement 4.95 billion pesos ($117 million) of royalties from the Malampaya gas field off Palawan would fund the military upgrade.
The field is to the east of Palawan island in an area of the South China Sea not claimed by China, but other nearby fields the Philippines wants to develop are in contested areas of the sea.
"(It) will fund necessary capability requirements of the Armed Forces of the Philippines in its territorial defence operations, including providing a strong security perimeter for the Malampaya Natural Gas and Power Project," Abad said.
The $4.5 billion Malampaya project, estimated to hold 2.7 trillion cubic feet of natural gas and 65 million barrels of condensate, is operated by Shell Philippine Exploration (RDSa.L), Chevron Philippines and state-owned PNOC Exploration Corp .
The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims on the sea, which is a key shipping lane and rich in fish, and also sits on potential large oil and gas deposits.
Last week, President Benigno Aquino met his Chinese counterpart, Hu Jintao, in Beijing and the two agreed on the need for a binding code of conduct in the sea.
Abad said the fund would allow the air force and navy to purchase six new search-and-rescue and patrol helicopters to guard Malampaya and other oil-and-gas exploration areas in the Reed Bank and Sulu Sea.
In June, the Philippines said it expected to award next year 15 contracts for oil and gas explorations requiring total investments of at least $7.5 billion, most of them in the Palawan and Sulu Sea areas.
The air force will develop a small helicopter base on Palawan, and the navy will set up four coastal radar stations to monitor ship traffic and help prevent intrusions into the country's exclusive economic zones, Abad said.
Washington, a long-time ally of the Philippines and wary of China's military build-up, has promised to provide secure communications and surveillance equipment to four coast watch stations that will track surface movements in disputed areas in the sea.
About $10 million had been spent on refurbishing a Hamilton-class navy frigate acquired from the United States in April, the largest surface vessel in the navy's fleet. Manila may get two more Hamilton-class ships by early 2012.
The field is to the east of Palawan island in an area of the South China Sea not claimed by China, but other nearby fields the Philippines wants to develop are in contested areas of the sea.
"(It) will fund necessary capability requirements of the Armed Forces of the Philippines in its territorial defence operations, including providing a strong security perimeter for the Malampaya Natural Gas and Power Project," Abad said.
The $4.5 billion Malampaya project, estimated to hold 2.7 trillion cubic feet of natural gas and 65 million barrels of condensate, is operated by Shell Philippine Exploration (RDSa.L), Chevron Philippines and state-owned PNOC Exploration Corp .
The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims on the sea, which is a key shipping lane and rich in fish, and also sits on potential large oil and gas deposits.
Last week, President Benigno Aquino met his Chinese counterpart, Hu Jintao, in Beijing and the two agreed on the need for a binding code of conduct in the sea.
Abad said the fund would allow the air force and navy to purchase six new search-and-rescue and patrol helicopters to guard Malampaya and other oil-and-gas exploration areas in the Reed Bank and Sulu Sea.
In June, the Philippines said it expected to award next year 15 contracts for oil and gas explorations requiring total investments of at least $7.5 billion, most of them in the Palawan and Sulu Sea areas.
The air force will develop a small helicopter base on Palawan, and the navy will set up four coastal radar stations to monitor ship traffic and help prevent intrusions into the country's exclusive economic zones, Abad said.
Washington, a long-time ally of the Philippines and wary of China's military build-up, has promised to provide secure communications and surveillance equipment to four coast watch stations that will track surface movements in disputed areas in the sea.
About $10 million had been spent on refurbishing a Hamilton-class navy frigate acquired from the United States in April, the largest surface vessel in the navy's fleet. Manila may get two more Hamilton-class ships by early 2012.