The Philippine Navy on Friday said it held drills near a disputed South China Sea shoal, where a large Chinese vessel was spotted patrolling.

US companies are interested in oil and gas projects in the Philippines, Manila’s energy chief said, as tensions with Beijing hamper exploration in disputed areas of the South China Sea.

Chinese side made solemn representations over the recent infringement and provocative activities of the Philippine side in the South China Sea and hyping China-Philippine disputes relating to the South China Sea during the Tenth Meeting of the China and Philippines Bilateral Consultation Mechanism on the South China Sea,

Tensions between Beijing and Manila have intensified in recent months concerning the South China Sea, a region spanning 3.5 million square kilometers (1.35 million square miles) through which an estimated $11.3 billion in global trade passes annually, according to the Center for Strategic and International Studies.

The Philippines and China agreed to seek common ground and find ways to cooperate despite their disagreements in the South China Sea, their foreign ministries said on Thursday, as heated rows persist over vessels deployed around disputed features.