China and the Philippines are discussing joint exploration of an area off the island nation claimed by Beijing.
Philippines Department of Foreign Affairs Sec. Alan Peter Cayetano confirmed during a press conference he had received approval from President Rodrigo Duterte to pursue an agreement.
The Philippines wants to include what it calls Rector Bank in the South China Sea in an oil and gas licensing round.
China claims the area, which it calls Reed Bank, along with much of the entire sea.
In July 2016, the Philippines government won a challenge to the Chinese claim in the United Nations Permanent Court of Arbitration. Duterte has not pressed for enforcement of the finding.
The Philippines government suspended exploration of the disputed area in 2014. But it has expressed worry about depletion of deepwater Malampaya natural gas field off Palawan Island, production from which fuels generation of 25% of the electricity used on the main island of Luzon.
Shell Philippines Exploration BV operates the Malampaya project in a joint venture with Chevron Malampaya LLC and state-owned PNOC Exploration Corp.
