UPDATE 1-Philippines sees South China Sea energy projects unhampered despite dispute

* Duterte lifts moratorium on South China Sea exploration
projects
* Unilateral move will not affect energy JV with
China-Philippines
* Three more exploration projects under evaluation by energy
dept
* China hopes it can work together on projects-foreign
ministry

(Adds quotes, China reaction, context)
By Karen Lema, Enrico Dela Cruz and Gabriel Crossley
MANILA/BEIJING, Oct 16 (Reuters) - The Philippines energy
secretary said on Friday the government's decision to lift a
six-year-old moratorium on oil and gas exploration in the South
China Sea was a unilateral move, as China said it hoped the
nations could work together on projects.
Alfonso Cusi also told a media briefing the move will not
affect a memorandum of understanding between the two countries
on a possible joint development in the disputed waters.
President Rodrigo Duterte has lifted the moratorium, imposed
in 2014 due to a territorial dispute with China, paving the way
for three projects to resume and for the energy ministry to
award more service contracts. The lifting comes after Duterte made his strongest defence
last month of a 2016 ruling by an international tribunal denying
China's claims to the energy-rich waters, telling the U.N.
General Assembly "we firmly reject attempts to undermine it".
China hoped it could work together with the Philippines in
jointly developing energy projects in the South China Sea,
foreign ministry spokesman Zhao Lijian said. "China and the Philippines have reached consensus on the
joint development of oil and gas resources in the South China
Sea and have established a cooperation mechanism for relevant
consultations," Zhao Lijian told a daily briefing on Friday.
"I hope and believe that the two sides will meet each other
halfway, promote joint development, and continue to make
positive progress," he said.
Cusi said there was no prohibition on ending the moratorium
unilaterally and hoped it could expedite projects and help the
Philippines address energy security issues.
He expressed confidence that Philippine companies could
proceed without any obstruction from China since "it follows
that we can do our activity freely as the country that has
economic rights" over the areas involved.
Cusi said three projects could now resume, including one by
Forum Energy Ltd, a unit of PXP Energy Corp PXP.PS .
Forum has a 70% interest in Service Contract 72 covering gas
exploration in the disputed Reed Bank. PXP has had talks with
China National Offshore Oil Corp (CNOOC) 0883.HK about joint
exploration and development there.
CNOOC did not immediately respond to a request for comment.
PXP's shares surged by 50% to the highest in eight months.
Cusi said three more project proposals, including one by
Udenna Corp, were under evaluation.