PXP unit takes new partner for project

January 11, 2018 | 12:03 am

A PERUVIAN UNIT of a company controlled by PXP Energy Corp. has taken on a new partner in an offshore exploration project in Peru, the Philippine-listed company told the stock exchange on Wednesday.

PXP Energy cited a disclosure by Karoon Gas Australia Ltd., which announced the farm out of a 35% interest in offshore exploration Bock Z-38, Tumbes Basin Peru to Tullow Peru Ltd., a wholly owned subsidiary of Tullow Oil plc.

Pitkin Petroleum Peru Z-38 SRL, a wholly owned subsidiary of Pitkin Petroleum Ltd. (PPL), holds a 25% participating interest in Peru Block Z-38. PXP Energy holds a 53.43% interest in PPL.

KEI (Peru Z38) Pty Ltd., Sucursal del Peru holds a 40% interest in the offshore exploration joint venture.

“Karoon is excited to welcome a partner with such a long and successful exploration track record into Peru. Tullow is a company, like Karoon, that recognizes the importance of high-impact offshore exploration as a core driver of a company’s future value,” said Robert Hosking, managing director of Karoon, in a disclosure to the Australian Securities Exchange.

Under the farm-out agreement, Tullow will acquire a 35% interest in the block by funding 43.75% of the cost of the first exploration well, capped at $27.5 million at 100%, beyond which Tullow will pay its 35% share.

Tullow is also to pay $2 million upon completion with a further $7 million payable upon declaration of commercial discovery and submission of a development plan to Perupetro.

The agreement remains subject to the satisfaction of certain licensing conditions and regulatory approvals, the Karoon announcement said.

“Following completion of the farm-out well, Tullow will have an option to assume operatorship of the block,” it said.

Block Z-38 is located in the Tumbes Basin, next to the oil producing Talara Basin.

“Historically offshore Peru has experienced only limited exploration activity, however 2017 has seen a resurgence of interest and inflow of industry capital looking to test Peru’s exciting offshore potential,” Karoon added.

On Wednesday, shares in PXP Energy slipped 0.76% to P7.84 each. — Victor V. Saulon

US allocates additional P330M in funding for Marawi, surrounding areas

January 11, 2018 | 12:03 am

THE US government, through the United States Agency for International Development (USAID), has allocated an additional P330 million ($6.6 million) to support vulnerable populations affected by the conflict in Marawi City and surrounding areas. The US Embassy in a statement said this assistance will provide opportunities for young women and men to enhance job skills and attain livelihoods, helping stimulate the economy. These new funds will also help vulnerable populations strengthen positive engagement within their communities. This brings the total USAID contribution to recovery and rehabilitation of Marawi and surrounding areas to over P1 billion ($20.9 million).

History of Thai kings a new topic in Islamic schools

January 11, 2018 | 12:03 am

BANGKOK — Private Islamic schools in Thailand’s Muslim-dominated south will teach the history of past kings, a governor said on Wednesday, the Buddhist-majority nation’s latest bid to bring peace to the strife-torn region, but one that could backfire.

The mostly Muslim southern provinces of Narathiwat, Pattani and Yala are home to an insurgency by ethnic Malay Muslims fighting for autonomy, in which more than 6,000 people have been killed since 2004.

Narathiwat governor Suraporn Prommool said 62 Islamic schools in the province would introduce the subject, dealing with the merits of Thai kings and national history, this year.

“There are a few people who do not understand Thai history and use it to create conflict and violence,” he told Reuters.

“This initiative will teach the merits of the kings and will create unity and love amongst Thai people.”

The move has provoked mixed feelings, however, said Artef Sokho, the head of a support group for conflict victims, the Network of Pattanians outside the Motherland.

“I don’t understand what the Thai government wants out of this,” Mr. Artef told Reuters, adding that some people in the region see the history as imposing on their Malay-Muslim identity.

“Thai nation-building history and the history of Pattani are incompatible … people here feel they have more of a shared history with the Malay peninsula,” Mr. Artef said.

Yala, Pattani and Narathiwat were part of an independent Malay Muslim sultanate before Thailand annexed them in 1909.

Insurgent attacks have long targeted government schools and teachers in the deep south, because they are seen as representatives of the Thai state.

“History in the Thai school curriculum is a centralized, Bangkok-focused version which doesn’t give importance to the southern provinces,” said independent analyst Rungrawee Chalermsripinyorat.

Successive Thai governments have initiated talks to reach peace with insurgent groups operating in the south but the talks have gone almost nowhere.

The military has also tried programs to win “hearts and minds” in the region.

But several rights groups have accused the authorities of heavy-handed tactics, such as torturing suspected insurgents in custody.

Despite court rulings that Muslim detainees were tortured in the south while in custody, no troops have ever been prosecuted. — Reuters

Sony is planning a whole range of robots after its Aibo pet dog

January 11, 2018 | 12:02 am

TOKYO — The verdict is still out on Sony Corp.’s new pet dog “Aibo,” but that’s not stopping the company from planning a deeper push into robotics.

The mechanical mutt, which goes on sale in Japan on Thursday, is just the beginning of the Tokyo-based company’s return to robotics, Chief Executive Officer Kazuo Hirai told Bloomberg TV. While Aibo is primarily a toy, its artificial intelligence (AI) capabilities and robotic architecture can be used to create machines for various service fields, he said.

“The technology we incorporated into Aibo — AI, robotics, and that combination — in different form-factors can manifest itself in other robots that can be a part of transportation, education, health care,” Hirai told Bloomberg’s Emily Chang. “So it has a lot of different applications beyond just being an entertainment robot.”

Mr. Hirai ordered the push into robotics in 2016, a decade after Sony discontinued the original version of its robot dog — then called AIBO — which had gained a cult following in Japan. While the new aibo promises more functionality powered by advanced artificial intelligence, it has drawn criticism for lacking features offered by digital assistants such as Amazon.com, Inc.’s Alexa and Apple, Inc.’s Siri. — Bloomberg

French beef producers cheer return to China

January 11, 2018 | 12:02 am

FRENCH BEEF producers on Tuesday hailed a deal reached by President Emmanuel Macron and his Chinese counterpart Xi Jinping to end China’s 2001 embargo on French beef.

The accord, which would allow French producers back into the huge Chinese market within six months, came as Macron made a three-day visit to the country, his first destination in Asia as France’s leader.

The ban was imposed over a decade ago as Beijing started closing off its markets to all European and later US beef imports in the wake of the “mad cow” disease scare.

Paris has been working for years to promote the safety of its meat and open new markets for its ranchers, who were hit hard by the “mad cow” scare of the 1990s.

“Our beef currently has no access (to China) for sanitary reasons. But with French beef consumption falling five percent a year, we have to find new markets,” said economy minister Bruno Le Maire, who is traveling with Macron.

“It will allow for higher prices that will better compensate cattle ranchers,” he said.

Beef is rapidly becoming more common on Chinese tables as the middle class expands, with imported meat particularly prized.

“Excellent news for France’s beef producers, who consider the potential of the Chinese market a strategic opportunity,” the Interbev producers’ association said in a statement.

Its president, Dominique Langlois, is part of the delegation of about 50 business leaders who joined Macron for his trip.

Interbev said China is the second-largest importer of beef, at nearly 1.1 million tons a year.

The average inhabitant eats four kilograms (8.8 pounds) each year, according to the Organization for Economic Cooperation and Development.

Ninety percent of China’s imports currently come from Brazil, Uruguay, Australia and New Zealand.

Several countries have dropped their import bans against French beef in recent years, including the United States, which again opened its market last year after imposing a ban in 1998.

French producers could nonetheless find China a tough market to crack.

“There is market share for France to take in China,” said Jean-Marc Chaumet, an economist who specializes in China at the French Livestock Institute in Paris.

“But it won’t be an Eldorado. It will be hard and take time, because France will be entering a very competitive market already open to the US, Uruguay, Canada and Australia,” he said.

“And they’ll need to invest, because the Chinese don’t know about French beef,” Chaumet added.

Beyond beef, French officials said talks were continuing about China’s ban on French poultry, imposed in 2015 after an outbreak of bird flu. — AFP

Foreign direct investments in the Philippines

January 11, 2018 | 12:02 am

NET foreign direct investment (FDIs) flows to the Philippines soared in October, logging the biggest amount in one-and-a-half years that brought the official 2017 target within reach. Read the full story.

Has East Asia liberalized its trade enough?

January 11, 2018 | 12:02 am

Under a system of perfectly free commerce, each country naturally devotes its capital and labour to such employments as are most beneficial to each. By rewarding ingenuity… it distributes labour most effectively and most economically: while, by increasing the general mass of productions, it diffuses general benefit, and binds together by one common tie of interest and intercourse, the universal society of nations throughout the civilized world.

— David Ricardo,
Principles of Political Economy and Taxation
(1817)

Classical British philosophers and political economists were the pioneer thinkers in articulating the net benefits and advantages of free trade over autarky and protectionism. These include David Ricardo, Adam Smith (“A nation may import to a greater value than it exports for half a century… and yet its real wealth, the exchangeable value of the annual produce of its lands and labor, may, during the same period, have been increasing in a much greater proportion,”) and David Hume (“the increase of riches and commerce in any one nation, instead of hurting, commonly promotes the riches and commerce of all its neighbors.”)

Perhaps it is no coincidence that former British protectorates and colonies in Asia are among the most rabid free traders in the world such as Hong Kong, Singapore, and Brunei.

Among the important indicators of how free an economy to global trade and commerce are (a) the mean and average tariff rates, and (b) standard deviation of tariff rates, which show how wide the variations among tariffs are that indicate high protectionism of certain sectors compared to other sectors.

Hong Kong, Singapore, and Brunei have impressive numbers: zero or very low tariff rates and standard deviation is also zero or very low. This means that there is little or no favoritism and protectionism of certain sectors. As a result, consumers and local producers are given the greatest freedom to choose various products and commodities available from around the world to come into their shores.

Japan, Malaysia, and Taiwan have low tariffs but their standard deviations are in double digits. For their part, the Philippines, Myanmar, and Indonesia have declining tariffs and single-digit variations, which are good.

Thailand, Vietnam, and South Korea seem to have not liberalized fast enough because of their relatively high mean tariffs and high tariff variations (see table).

David Ricardo has articulated the classical definition and theory of “comparative advantage.”

This theory has a beautiful application for developing economies like the Philippines to avoid concentrating their resources — human, financial, and land, among others — on few goals like food “self-sufficiency” when they can diversify their resources and earn higher income from manufacturing, tourism, and other sectors.

These economies can then use surplus and savings to purchase food and other commodities from abroad, especially from neighbors that have better natural endowment in bigger food production.

From the numbers above, there is a mixture of results in trade liberalization by East Asian economies. Overall tariff rates have declined through time but tariff variations have also increased in some countries and economies.

We go back to choosing three pathways to trade liberalization: multilateral like World Trade Organization (WTO), Asia-Pacific Economic Cooperation (APEC), Regional Comprehensive Economic Partnership (RCEP) negotiations; bilateral like Japan-Philippines Economic Partnership Agreement (JPEPA); or unilateral like what Hong Kong, Singapore, and Brunei have done.

The best outcome would be via global and multilateral liberalization under the WTO but this is also the most difficult, most complicated, and most bureaucratic.

After 22 years (1995-2017) of regular global negotiations, there were no major achievements except the Tariff Facilitation Agreement (TFA) which needs legislative ratification by all signatory countries.

Unilateral liberalization is the simplest and fastest route to take. Just consider the interests of local consumers and producers in general — to have the widest choices possible in terms of prices and product quality. More choices means more freedom, more savings and by extension, higher incomes.

Bienvenido S. Oplas, Jr. is President of Minimal Government Thinkers, a member-institute of Economic Freedom Network (EFN) Asia.

minimalgovernment@gmail.com.

Feeding the fashionistas: Gucci turns to fine dining

January 11, 2018 | 12:02 am

FLORENCE, ITALY — It’s all a matter of taste.

Luxury labels are accustomed to tempting fashionistas, and now they’re stretching from haute couture to haute cuisine.

Gucci opened a 50-seat restaurant, Gucci Osteria, in Florence on Tuesday where three-Michelin-star chef Massimo Bottura will serve up high-end dishes.

The Italian fashion house, owned by Kering, is not the only luxury company to foray into food; LVMH announced late last year it would open a second branch of its gourmet grocer La Grande Epicerie in Paris, days before Tiffany’s & Co. opened its Blue Box Café in New York.

“The big brands are following where their high-spending clients’ cash is going,” said Fabrizio Pini, professor and joint director of the International Master in Luxury Management of Milan’s MIP Politecnico business school.

Gucci and its rivals do not expect these investments to yield significant financial returns, for now, but they are seen as a way of enhancing their global brands. In some cases, eateries can also be a way to make the most out of large, city-center store sites as customers increasingly shop online.

The Gucci restaurant is sited behind the walls of the 14-century Palazzo della Mercanzia building, overlooking the city’s most famous square, Piazza della Signoria. Visitors can treat themselves to the likes of Parmigiano Reggiano tortellini, Peruvian-inspired tostadas, pork belly buns and mushroom risotto for €20-€30 per dish.

Few strategies come without an element of risk, however.

Bernstein analyst Mario Ortelli said that if luxury companies did not provide a gastronomic experience that matched their other goods, it could dilute their brands. “The experience has to be luxurious and recognizable,” he said.

While labels are looking to these investments for marketing rather than profits, a presence in food could offer some financial returns in the long run.

With a global luxury market estimated to be worth €1.2 trillion in 2017, sales of luxury wines and spirits and food, together worth just under €120 billions, last year grew 6%, more than personal luxury goods such as bags, shoes and clothing, according to Bain & Co.’s yearly report on the sector.

“Food is luxury as much as fashion,” said Stefano Cantino, strategic marketing director at Prada, which owns exclusive Milan patisserie Marchesi.

“Barriers have been broken.”

The Gucci Osteria restaurant is part of “Gucci Garden,” which includes an exhibition area, a bazaar-like boutique and a cinema room. “Haute couture and haute cuisine are a recipe made in heaven,” Bottura told reporters. — Reuters

Oral arguments on martial law extension set

January 11, 2018 | 12:02 am

THE SUPREME COURT en banc scheduled on Jan. 16 and 17 oral arguments on the consolidated petitions questioning the legality of the re-extension of martial law and suspension of the privilege of the writ of habeas corpus. Two similar petitions filed separately by opposition lawmakers led by Albay Rep. Edcel C. Lagman on Dec. 27, 2017 and by the National Union of People’s Lawyers (NUPL) on Jan. 4 were also ordered consolidated. The Supreme Court also directed the Office of the Solicitor-General to submit its comment on the petition filed by NUPL on Jan. 13 and for the petitioners to submit their respective memorandum on Jan. 20. — MNDC

Firm to receive up to $70M if MH370 found in new hunt

January 11, 2018 | 12:02 am

KUALA LUMPUR — Malaysia signed a deal with an American firm on Wednesday to resume the search for MH370 almost four years after the plane disappeared, with the company to receive up to $70 million if successful.

The new hunt, which will last 90 days, is expected to start in mid-January when a high-tech vessel leased by the seabed exploration firm, Ocean Infinity, reaches a new search zone in the southern Indian Ocean.

The Malaysia Airlines jet disappeared in March 2014 with 239 people — mostly from China — on board en route from Kuala Lumpur to Beijing, triggering one of the world’s greatest aviation mysteries.

No sign of the plane was found in a 120,000 square kilometer (46,000 square mile) search zone selected by satellite analysis of the jet’s likely trajectory.

The Australian-led sea search, the largest in aviation history, was suspended in January last year.

But three firms submitted bids to resume the hunt privately and after lengthy negotiations, the Malaysian government agreed to engage Ocean Infinity on a “no find, no fee” basis.

“I would like to reiterate our unwavering commitment towards solving the mystery of MH370,” Transport Minister Liow Tiong Lai said Wednesday at a signing ceremony for the deal.

The new search zone is an area of approximately 25,000 square kilometers in the Indian Ocean.

If the company finds the Boeing 777, the amount they are paid will depend on where it was located, said Mr. Liow.

If it is found within the first 5,000 square kilometers, they will receive $20 million. The amount rises gradually to a maximum of $70 million if the jet is found outside the 25,000 square kilometer search zone.

Relatives of MH370 passengers welcomed the decision.

“We are grateful the Malaysian government is resuming the search for MH370,” V. P. R. Nathan, whose wife Anne Daisy was on the plane, told AFP.

“We do not know what happened, we need to know what happened before we can get closure.”

The ship that will conduct the hunt is a Norwegian research vessel named Seabed Constructor, which is carrying 65 crew members and set off from South Africa in early January for the search zone.

It is carrying eight autonomous drones, equipped with sonars and cameras, that will scour the waters in the hunt for the wreckage and can operate in depths up to 6,000 meters (20,000 feet).

Only three confirmed fragments of MH370 have been found, all of them on western Indian Ocean shores, including a two-meter wing part known as a flaperon. — AFP

PLDT unit to forge foreign deals in Q1

January 11, 2018 | 12:02 am

PLDT, Inc.’s digital innovations unit Voyager Innovations, Inc. expects to sign deals with foreign partners within the first quarter of the year.

“It’s going to be financial and strategic,” PLDT Chairman, President and CEO Manuel V. Pangilinan told reporters on the sidelines of the The Outstanding Young Men awardees announcement, when asked about partnerships with foreign firms.

Asked whether the deals could be signed within the first quarter of the year, he replied: “I’ll stick my neck out for it.”

The signing of partnerships is key to Voyager’s overseas expansion plans. Mr. Pangilinan previously said that Voyager needs to scale and aim for a larger market and venture outside the country.

Voyager Innovations President and CEO Orlando B. Vea previously said the company is targeting emerging markets, particularly in Asia, where it sees a strong demand for its services.

Voyager on Tuesday launched DigiHub, an office space at its Launchpad headquarters in Mandaluyong City that entrepreneurs can use. DigiHub is expected to be fully operational by first quarter of next year.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — P.P.C. Marcelo

Tata Steel starts today

January 11, 2018 | 12:02 am

The first super tournament of the year, the Tata Steel Masers to be held in the historic seaside resort in Wijk aan Zee, will be starting today. Apart from the exciting chess that is always part of the Tata Steel tradition, this tournament will act as some sort of heat check on the participants who will be playing in the Candidates Tournament in March.

Five of the eight Candidates will be participating in Wijk aan Zee: Fabiano Caruana USA 2811, Shakhriyar Mamedyarov AZE 2804, Wesley So USA 2792, Vladimir Kramnik RUS 2787 and Sergey Karjakin RUS 2753. Only Levon Aronian ARM 2797, Ding Liren CHN 2769 and Alexander Grischuk RUS 2767 will be absent.

The other players in Wijk are Peter Svidler RUS 2768, Vishy Anand IND 2767, Anish Giri NED 2752, Wei Yi CHN 2743, Maxim Matlakov RUS 2718, Hou Yifan CHN 2680, Baskaran Adhiban IND 2655 and England’s Gawain Jones 2640.

Wesley So is the defending champion here, by the way. You will recall this game from last year’s tournament. Before the last round Magnus Carlsen was half a point behind Wesley and the pairing were Carlsen vs Karjakin and Wesley vs Nepomniachtchi. The speculation was that Carlsen would beat Karjakin and Wesley-Nepom would end in a draw, setting up a tiebreak match between the two. That did not happen. Carlsen could only draw while Wesley crushed his opponent.

Nepomniachtchi, Ian (2767) — So, Wesley (2808) [D00]
79^th Tata Steel GpA Wijk aan Zee (13.2), 29.01.2017

1.d4 Nf6 2.Bg5 d5 3.Nd2 c5 4.dxc5 e6 5.e4 h6 6.Bh4 dxe4 7.Qe2 Qa5 8.0–0–0?! Qxa2 9.Qb5+? Nbd7 10.c6 bxc6 11.Qxc6 <D>

POSITION AFTER 11.QXC6

11…Bb7!

Obviously overlooked by White.

12.Qxb7 Qa1+ 13.Nb1 Rb8 14.Qxb8+

[14.Qc6 Qxb2+ 15.Kd2 Bb4+ followed by 0–0 and Rfc8. The only reason White did not resign here is because he didn’t want to lose a game in 13 moves]

14…Nxb8 15.Bb5+ Nfd7 16.Ne2 Be7 17.Bxe7 Kxe7 18.Nd4

White still has traps. If Black is not careful then Nb3, Qa2, Nc3 traps the queen.

18…Nc5 19.h4 Rd8 20.Rh3

And now Ra3 once again traps the queen.

20…Nd3+! 21.Bxd3 Rxd4 22.Be2 Rxd1+ 23.Bxd1 Qa5 24.Nd2 f5 25.Rg3 Qe5 26.Ra3 Nc6 27.g3 Qd4 28.Re3 Nb4 0–1

The top two Dutch players usually play in this event but this year only Anish Giri is participating. Loek Van Wely declined his invitation this year. Too bad — he had played in the previous 25 (!!) editions.

Maxim Matlakov is the European Champion so his invitation here is no surprise. He is 26 years old and lately making a big push to join the elite chess invitation list to all these superGM tournaments. He is a power player — deep opening preparation and an active aggressive style to cash in on the advantages and/or initiative gained from that phase. Here is a representative sample from the 2017 European Club Championship. Playing Black is Evgeniy Najer, the 2015 European Champion and a tactical monster who is nicknamed “Moscow Magic.”

Matlakov, Maxim (2730) — Najer, Evgeniy (2699) [D26]
33^rd ECCC Open 2017 Antalya (3), 11.10.2017

1.Nf3 d5 2.d4 Nf6 3.c4 dxc4 4.e3 e6 5.Bxc4 c5 6.0–0 Nbd7

[6…a6 7.a4 Nc6 8.Nc3 is the standard continuation]

7.Nc3 a6 8.e4 b5 9.Bb3 cxd4 10.Nxd4 b4

A new move, but it looks like Black should have completed his development first with 10…Bc5.

11.Na4 Bb7

It turns out that the e4 pawn cannot be taken. After 11…Nxe4 12.Bxe6! fxe6 13.Nxe6 Qa5 14.Bf4 Black is under a very strong attack.

12.Bxe6!

Nevertheless!

12…fxe6 13.Nxe6 Qa5

[13…Qb8 14.Bf4]

14.Bf4 Rc8 15.Qb3?

[15.Re1]

15…Nh5?

[15…Bxe4! 16.Rfe1 Bd5 hard to believe, but Black is doing ok here]

16.Ng5! Nxf4 17.Qf7+ Kd8 18.Qxf4 Rg8

[18…Qxa4? 19.Nf7+ Ke8 20.Nxh8]

19.Rad1! Bc6 20.e5!

Threatening to push this pawn to e6.

20…h6

[20…Be7 21.Nc5! Bxc5 (21…Qxc5 22.Ne6+) 22.e6 Rc7 23.exd7 Bxd7 (23…Rxd7? 24.Qb8+ Ke7 25.Rfe1+ with a mating attack) 24.Ne6+ Kc8 25.Qf7 Rh8 26.Nxc7 Qxc7 27.Qd5 White has a decisive advantage]

21.Nf7+! Ke8 22.Qf5 Be7 23.Qg6

Threatening a discovered check with Ng5 followed by Ne6 mate.

23…Qxa4 24.Ng5+ 1–0

Hou Yifan is the highest rated woman chessplayer and Baskaran Adhiban was invited back because of the fantastic chess he played in last year’s Tata tournament. Gawain Jones is the qualifier from the 2017 Challengers Group.

There was some question as to why Wei Yi was invited rather than his compatriot Ding Liren. After all Ding is a candidate and rated no. 1 in China. Also, he played here in Wijk aan Zee in the 2015 edition and did not do too badly, finishing just half a point behind world champion Magnus Carlsen.

There was some speculation that the Dutch organizers intended to invite Ding but due to the language barrier got Wei Yi instead, but I don’t believe that. Invitations to the tournament are routinely sent out months before the actual event and apparently no one thought that Ding would finish 2^nd in the World Cup, which was held in September.

Nevertheless Wei Yi is a very strong player who some say has the potential to become world chess champion. In addition to that Wei Yi has a very aggressive style which is very entertaining for the spectators — any tournament he participates in is fortunate.

In the 2017 World Cup Wei Yi almost got knocked out in the first round by the Canadian GM Bator Sambuev. Faced with a “win or go home” 2^nd game he delivers.

Wei, Yi (2753) — Sambuev, Bator (2522) [C19]
FIDE World Cup 2017 Tbilisi GEO (1.2), 04.09.2017

1.e4 e6 2.d4 d5 3.Nc3 Bb4 4.e5 c5 5.a3 Bxc3+ 6.bxc3 Ne7 7.a4 Qc7 8.Nf3 b6 9.Bb5+ Bd7 10.Bd3 Nbc6 11.0–0 h6 12.Re1 0–0 13.h4

More common is either Ba3 or Bf4. IM John Watson, who has written several books on the French, speculates that the idea behind this move is probably h4–h5 followed by the sacrifice Bxh6 and then Qd2.

13…c4

Closing the center is usually bad for Black. Watson recommended 13…f5 14.exf6 Rxf6 with a nice fight ahead.

To show you how dangerous White’s formation is II will show you the following game: 13…Na5? (the Black knight is out of the play here) 14.Nh2!? cxd4 15.cxd4 Nf5 16.Ng4 White is already winning 16…Nc4?! 17.Nf6+! gxf6 18.Qg4+ Kh7 19.Qh5 Kg8 20.Bxf5 exf5 21.exf6 Rfe8 22.Bxh6 1–0. Vovk,Y (2539)-Bobula,M (2393) Kosice SVK 2010.

14.Bf1 f6 15.h5 fxe5 16.dxe5 Rf7 17.Ba3 Raf8

[17…Nf5 to keep watch on d6 does not work, as White can simply play 18.g3 followed by Bh3]

18.Bd6 Qd8 19.Be2 Rf5 20.Nh4 Rf4

[20…Rxf2 21.Nf3 traps the rook on f2.]

21.Bg4 R8f7

This move is a prelude to …d5-d4 and …Nd5.

22.f3 d4

Sambuev’s idea. He wants White to “trap” his rook by 23.g3 when he has 23…Nd5 and White dare not take the rook because 24.gxf4 (repositioning the vulnerable knight on h4 by 24.Ng6 is met violently: 24…Rxg4 25.fxg4 Qg5 once again the Black pieces become very active) 24…Qxh4 25.Qd2 Rxf4 Black is clearly better.

23.Ng6 Nd5 24.Nxf4 Rxf4 25.cxd4 Rxd4 26.Qe2 Qg5 27.Qf2 Rd2 28.Re2 Rd4 29.Ree1 Rd2 30.Re2 Rd4 31.Qe1 g6 32.Re4 gxh5 33.Bh3 Rd2 34.Kh1 Rxc2 35.f4 Qg6 36.f5! exf5 37.Qd1

With an attack on c2 as well as d5. 37…fxe4?

Sambuev loses his control. Best is 37…Nc3 38.Qxc2 Nxe4 39.Qxc4+ Kg7 40.Re1 and it is still a game.

38.Qxd5+ Kg7 39.Rg1 Be8 40.Rf1 h4 41.Bf8+ Kh8 42.Ba3 Kg7 43.Rf6 e3 44.Rxg6+ Bxg6 45.Qd7+ Kh8 46.Bf8 1–0

Nice fight.

Looking forward to a great tournament!

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net