Malacanang said on Tuesday any joint exploration to be conducted in the South China Sea would be “business to business” and within the framework of the decision of the arbitral tribunal.

President Rodrigo Duterte earlier said the Philippines was open for a joint oil exploration in the disputed waters.

"Whatever exploration there will be will have to be done not country to country, but with business to business," Presidential Spokesperson Ernesto Abella said in a press briefing.

"However...all of these things must be done within constitutional limitations or definitions," he added.

Asked if the ruling of the Permanent Court of Arbitration (PCA) would be considered in the proposal for a joint exploration, Abella said, "As far as the President is concerned, yes, definitely. Like he said again and again, if you notice...he says he will stay within the parameters of the ruling."

In July, the court invalidated China's nine-dash line, which practically covers the South China Sea, including those areas within the 200-nautical miles exclusive economic zone of other countries, like the Philippines.

China, which did not participate in the proceedings, has been rejecting the ruling. Celerina Monte/DMS