UPDATE 1-Philippines' Duterte approves resumption of energy projects in South China Sea

* Move clears way for three exploration projects to resume
* Energy chief hints at possible Philippines-China energy
venture

(adds details, quotes, background)
MANILA, Oct 15 (Reuters) - Philippines President Rodrigo
Duterte has lifted the moratorium on petroleum exploration in
the South China Sea, paving the way for three projects to
resume, including a possible joint venture with China.
Energy Secretary Alfonso Cusi said on Thursday that service
contractors were notified to resume energy-related activity in
the area, which had been suspended from 2014 due to territorial
disputes.
China claims almost the entire South China Sea, believed to
be rich in energy and marine resources. Brunei, Malaysia,
Vietnam and Taiwan also have claims.
Last year Duterte said Beijing had offered Manila a
controlling stake in a joint energy venture in the South China
Sea, if it sets aside an international arbitral award that went
against China. The Philippines had imposed the moratorium while awaiting a
ruling in a case by the Permanent Court of Arbitration in the
Hague, which in 2016 invalidated China's claim to sovereignty
over most of the South China Sea.
Cusi said the decision to lift the moratorium was arrived at
"in good faith and with full regard of the ongoing negotiations
between the Philippines and China, and Forum Ltd and the China
National Offshore Corp" (CNOOC).
Forum, a unit of the Philippines' PXP Energy Corp PXP.PS ,
operates Service Contract 72 covering gas exploration in the
Reed Bank, which is within the disputed territory. PXP has had
talks with CNOOC about joint exploration and development there.
Two other exploration projects have been given the
go-signal, such as SC 59 operated by Philippine National Oil
Company and SC 75, also by PXP.
"The lifting of the suspension places the service
contractors under legal obligation to put capital into the
contract areas and hire Filipino engineers and technical
workers," Cusi said in a statement.
The Chinese embassy in Manila did not respond to Reuters'
request for comment.