The Philippines has removed a major hurdle in advancing oil exploration with Beijing in the South China Sea, its top diplomat has said, but the two nations will have to navigate their overlapping claims in the area to reach a deal.

President Rodrigo Duterte lifted a six-year ban on oil exploration in the South China Sea earlier this month to ensure that talks between Chinese and Philippine entities result in actual projects, Foreign Affairs Secretary Teodoro Locsin said in an email to Bloomberg last week. China’s initial response to the move "has been very positive,” he added.

While the moratorium was imposed to "stop activities that might annoy China,” Locsin said that Duterte’s decision will not just benefit Beijing.