Marcos Sees Path To Joint PH-China Energy Venture Despite Sea Tensions
- August 19, 2026
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President Ferdinand Marcos Jr. said the Philippines is making progress in discussions with China on possible joint oil and gas exploration, as rising fuel prices and the country’s energy needs add urgency to efforts to secure new sources of supply.
Marcos said the ongoing talks could eventually lead to a joint exploration or commercial agreement, despite persistent tensions between Manila and Beijing over competing claims in the South China Sea.
“The Philippines needs additional supplies of oil and gas. We need to explore the possibilities that we have,” Marcos said on Friday, Aug. 14, during a forum organized by the Foreign Correspondents Association of the Philippines.
“In the Philippines, in the West Philippine Sea, and wherever else, we can make a joint (deal),” he added.
Renewed Urgency
The discussions have gained added importance after Marcos declared a national energy emergency in March, as volatility in global energy markets heightened.
The conflict in the Middle East has pushed up fuel prices, putting additional pressure on the import-dependent Philippine economy. Higher pump prices have contributed to inflationary pressures while the economy has faced slower growth.
Marcos said the energy emergency had underscored the need to explore all available options for securing oil and gas supplies.
The government has been seeking ways to strengthen the country’s energy security, including through domestic exploration and potential cooperation with other countries.
Asked whether a joint energy deal with China could be reached before the end of his term in two years, Marcos said it was possible. He added that the fact that discussions were continuing indicated that the parties were working toward a possible agreement.
“We wouldn’t be having these discussions if it was not with a view to actually … having such a joint operation,” he said. “I think the sense I get is that all parties involved want it to succeed, and that is always a very good sign.”
Revived Talks
The Philippines and China have a history of unsuccessful attempts to pursue joint energy exploration in the South China Sea.
Talks for a joint energy project were terminated in 2022 after then-President Rodrigo Duterte ordered an end to negotiations.
Marcos reopened the possibility of energy cooperation in 2023 after meeting Chinese President Xi Jinping.
The Department of Foreign Affairs said in March that Manila and Beijing had begun initial exchanges on potential oil and gas cooperation.
Marcos said the two sides were still working through the terms of a possible joint venture or commercial arrangement and did not give a specific timetable for concluding a deal.
The potential cooperation would have to be pursued against the backdrop of the two countries’ longstanding maritime dispute.
Tensions Persist
China claims most of the South China Sea, including areas that the Philippines considers part of its exclusive economic zone. A 2016 arbitral ruling rejected the legal basis of Beijing’s expansive claims, a decision China has refused to recognize.
The disputed waterway has remained a major source of friction between Manila and Beijing, with Chinese and Philippine coast guard vessels repeatedly facing off in contested areas.
The tensions have also affected discussions over the Philippines’ regular rotation and resupply missions to the BRP Sierra Madre, a grounded Philippine Navy vessel at Ayungin Shoal.
Marcos said there was no special arrangement with China governing those missions and stressed that the Philippines did not need Beijing’s permission to conduct them.
“We’re just conducting ourselves, according to the standard practice, the vessels sailing in the West Philippine Sea,” Marcos said.
The Philippines and China summoned each other’s ambassadors last month following a clash at Ayungin Shoal. The incident drew condemnation of China from some of Manila’s allies and renewed concerns that repeated confrontations could escalate.
Despite those tensions, Marcos said the energy discussions were moving forward, suggesting that economic and energy interests could continue to be pursued alongside the longstanding maritime dispute.
Source:
https://globalnation.inquirer.net/334863/marcos-sees-progress-in-china-energy-exploration-talks
