Duterte also told reporters he did not want to have a "fight" with China over Benham Rise -- waters recognised by the United Nation as indisputably Philippine territory -- partly because he wanted Chinese economic help.
"They have no incursion because we have an agreement," Duterte told reporters when asked about the reported presence of Chinese surveillance ships at Benham Rise.
"Some people are just blowing it up. We previously agreed. It was a research ship. We were advised of it way ahead."
"The very concerning thing is they have several service ships plying this area, staying in one area sometimes for a month as if doing nothing. But we believe they are actually surveying the seabed," Lorenzana said.
"I have ordered the Navy that if they see this service ship this year, to start to accost them and drive them away."
Lorenzana said China may be "looking for a place to put submarines".
"Let us not fight about ownership or sovereignty at this time because things are going great for my country," Duterte said in reference to China.
Benham Rise is an underwater landmass 250 kilometres off the east coast of the main island of Luzon.
In 2012, the United Nations Commission on the Limits of the Continental Shelf approved the Philippines' undisputed territorial claim to Benham Rise.
Chinese foreign ministry spokesman Geng Shuang said last week that although the UN had ruled in the Philippines' favour, this did not mean Benham Rise was part of its territory.
Duterte's predecessor, Benigno Aquino, had forcefully challenged China in diplomatic and legal circles over the South China Sea dispute, leading to a sharp deterioration in bilateral relations.
Duterte, who took office last year, has reversed that policy, preferring instead to placate China in return for hoped-for billions of dollars worth of investments and grants.
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