Sampaguita: South China Sea peace template?

By itself, Forum Energy doesn't have the technology or the money to develop Sampaguita. CNOOC and China does.

As a result, Sampaguita could represent an ideal first loan for China's Asian Infrastructure Investment Bank. Lending money for mutually-agreed joint development of Sampaguita could help put to rest fears the AIIB will become just a stalking horse for incremental Chinese assertions of commercial and political hegemony.

There's face-saving precedent for this line of thinking.

Chinese leadersfrom Deng Xiaoping to China's current leader Xi Jinping have voiced support for joint development in the South China Sea. Demonstrating this with Sampaguita using Chinese capital and a Philippine 'social license' would serve everyone's interests while lowering the risks of military confrontation.

That's because joint development of Sampaguita could enable all sides to shift from military and territorial claims to economic logistics. All sides are keen on this.

Under a joint venture, SC72's gas could be developed and delivered to market through an extension of the Malampaya pipeline southward to Sampaguita. It's highly likely Forum Energy and CNOOC already have discussed something along these lines.

SC72represents a unique, precedent-setting prize.

A similar near-term, confidence building opportunity with benefits all around doesn't exist elsewhere in the South China Sea. Agreeing to joint development would yield diplomatic, financial, economic, energy benefits for everyone.