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

MANILA (Reuters) -- The Philippine navy said on Friday its ships were holding drills near a contested shoal in the South China Sea, a day after Manila and Beijing agreed to seek common ground and find ways to cooperate despite ongoing disputes.

MANILA, Philippines — The Philippines accused China on Tuesday of intimidating its fishermen at a disputed South China Sea shoal, and normalizing an “illegal presence,” after Beijing sent its largest coast guard vessel into Manila’s maritime zone.

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.

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.