The exercise around the Scarborough shoal, one of Asia's most hotly contested areas, was aimed at enhancing the navy's capability to secure what it said were Philippine waters and the country's territorial integrity, the navy said in a statement.

The Philippine Navy said its warships held exercises Friday in the South China Sea as part of its efforts to assert its sovereign rights over waters also claimed by Beijing.

Philippine navy ships were holding drills near a contested shoal in the South China Sea on Friday, a day after Manila and Beijing agreed to seek common ground and find ways to cooperate despite ongoing maritime disputes.