Philex Mining Corp. said on Tuesday that it is setting its sights anew on the development of Recto Bank, following the statement of the Chinese embassy in Manila that the Philippines should be open to a joint exploration of the area.

A Philex Petroleum official said that this 2013, they will set their focus on holding discussions on the resource-rich Recto Bank in northwest Palawan province.

Recto Bank is 150 kilometers off Palawan, or within the country’s exclusive economic zone, but is also claimed by China.

“We are very interested in Recto Bank. Also, the [Philippine] government, our partner, is also interested in Recto Bank,” said lawyer Mike Toledo, Philex senior vice president for Corporate Affairs.

Chinese Ambassador to the Philippines Ma Keqing strongly suggested that China and the Philippines must collaborate in maximizing oil and gas potentials of Recto Bank.

“It is a good sign that China is open [to a joint exploration],” Toledo said.

Philex officials are hopeful that discussions about the issue would progress but Toledo did not disclose a timeline.

“Recto Bank is a resource-rich area. It has 3.4 trillion cubic feet of gas and 440 million barrels of oil, which is so much bigger than the existing Malampaya gas field in Palawan,” Toledo said.

He said that in pursuing talks on Recto Bank development, they would have to consider the political reality and that they would have to work under the political guidelines of the government.

Philex earlier announced that it would abandon its planned joint venture with a Chinese company if the maritime dispute plaguing the area will not be resolved in favor of the Philippine government.

Manuel Pangilinan, chairman of Philex Petroleum Corp., earlier said that his group is ready to pull out from the proposed partnership with state-owned China National Offshore Oil Corp., if political and commercial discussions will not satisfy the company and Manila.

“One thing that we will not do is infringe on the sovereignty or breach the laws of this country. So if the terms proposed are not acceptable to us or our government, we will simply not proceed,” he said.