MANILA (REUTERS) - The Philippines will buy helicopters and build radar stations to strengthen its defence of oil and gas assets located near an area of the South China Sea also claimed by China, a step that may annoy Beijing.
Budget Secretary Florencio Abad said in a statement 4.95 billion pesos (S$141 million) of royalties from the Malampaya gas field off Palawan would fund the military upgrade.
The field is to the east of Palawan island in an area of the South China Sea not claimed by China, but other nearby fields the Philippines wants to develop are in contested areas of the sea.
'(It) will fund necessary capability requirements of the Armed Forces of the Philippines in its territorial defence operations, including providing a strong security perimeter for the Malampaya Natural Gas and Power Project,' Mr Abad said.
