"Set the arbitration aside," Duterte said, quoting Xi. "Put away your claim. Then let everyone who is connected to the Chinese companies. They want to explore and if there is anything, they said, we would be gracious enough to give you 60%, they will only get 40%. It is promise by Xi Jinping, "Duterte reportedly said.
An EEZ grants a country exclusive maritime rights to resources such as fish and oil and gas within 200 nautical miles of that land mass. Manila's EEZ, on behalf of the UN Maritime Convention, overlaps the waters that China and Vietnam claim.
"As long as the two sides handle the South China Sea issue properly, the atmosphere of bilateral ties will be sound, the basis of the relationship will be stable and regional peace and stability will have a v Xi said.
At a press briefing on Wednesday, China's spokeswoman Hua Chunying did not directly comment on the proposed offer, but said the Philippines was "ready to accelerate cooperation with China on oil and gas joint exploitation."
"The two sides announced the establishment of an intergovernmental joint steering committee and a working group of relevant companies from the two countries on oil and gas cooperation," she said.
The deal included a memorandum of understanding to jointly explore energy resources, along with agreements on basic education, agricultural cooperatives and infrastructure projects, Philippine Government spokesman J. V. Arcena told CNN at the time.
Beijing claims a huge territory in the much-contested sea, overlapping competing claims from the Philippines, Vietnam, Brunei and Malaysia, among others.
And Manila has been in a troublesome dance between Beijing and Washington for several years across the South China Sea.
The Philippines has previously taken a strong line over China's behavior in the area, even taking China to the international court. But under Duterte, the government has increasingly seen to build an economically advantageous relationship with Beijing.