China signals openness to talks on joint oil exploration with Philippines

CHINA signaled it remains open to further discussions with the Philippines on joint oil and gas exploration in the South China Sea, a move that could revive stalled energy cooperation between the two countries amid rising concerns over global supply risks.

Beijing thinks setting aside disputes and pursuing joint development could help preserve peace and stability in the contested waters, Chinese Embassy officials in Manila said late on Wednesday.

“Setting aside differences and pursuing joint development is the right path to uphold peace and stability in the South China Sea and deliver benefits to countries in the region and their peoples,” Wei Guo, deputy spokesman of the embassy, said in a statement.

Mr. Wei said China and the Philippines have made “positive progress” in in‑depth discussions on joint oil and gas development in the disputed waters, adding that Beijing remains open to further dialogue “as long as the Philippines demonstrates sincerity.”

The remarks come after Philippine President Ferdinand R. Marcos, Jr. said earlier this week that his government was looking to revive talks on joint energy exploration with China, citing heightened risks to global oil supplies from conflicts in the Middle East, including the Israel‑Iran war, as a possible impetus for renewed negotiations.

He said he is open to resuming negotiations with China on a possible joint oil exploration with China at Reed Bank.

Foreign Affairs Secretary Maria Theresa P. Lazaro later confirmed that exploratory talks could be “forthcoming,” though she said discussions have not formally restarted.

The idea of joint oil and gas development in the South China Sea resurfaced in 2023 following a meeting between Mr. Marcos and Chinese President Xi Jinping, after years of diplomatic tension over maritime claims and security incidents in the area.

Previous negotiations collapsed after the Philippine Supreme Court voided a joint seismic survey agreement involving China and Vietnam, citing constitutional and legal concerns, particularly provisions that appeared to undermine the Philippines’ sovereign rights over its exclusive economic zone.

Any renewed talks could face similar scrutiny. The Philippine Constitution mandates that the country retain full control and supervision over the exploration and development of natural resources, a hurdle that has previously stalled joint agreements with foreign partners.

Malacañang said Manila remains open to renewed dialogue, pushing back against suggestions from Beijing that the Philippines needed to demonstrate sincerity.

“In all circumstances, on all occasions, the Philippines is always sincere in dialogue and negotiation,” Palace Press Officer Clarissa A. Castro told reporters at a separate briefing.

She added that any engagement with China on energy cooperation would ultimately be evaluated based on national interest. If there are negotiations, “the President will not oppose that.”

The South China Sea remains one of Asia’s most volatile geopolitical flashpoints. China claims almost the entire waterway, a position rejected by a 2016 ruling by a United Nations‑backed arbitral tribunal that voided Beijing’s sweeping claims. China has refused to recognize the ruling.

Relations between Manila and Beijing have soured in recent years due to repeated confrontations between Chinese and Philippine vessels near disputed features, prompting Manila to deepen defense ties with the US and other allies.

Also on Thursday, Energy Secretary Sharon S. Garin said the Philippines has received the first delivery of government‑procured imported fuel, bolstering its energy inventory as global supply risks keep prices elevated.

“Government-procured diesel has arrived in Luzon,” she said in a Facebook post. “This is the first delivery and there will be more deliveries in the coming days or weeks.”

The Philippines has been scrambling to ensure fuel supply as the war involving Iran disrupts global oil trade. The country has about 45 days’ worth of oil inventory, according to the Energy department.

The Strait of Hormuz, which carries roughly a fifth of the world’s oil shipments has been shut due to an Iranian blockade, compounding supply pressures.

In a related development, Mr. Marcos said the Philippines has moved closer to extending the life of its largest natural gas asset after a new well in the Malampaya gas field showed stronger‑than‑expected output.

In a video message, the President said Camago‑3 well had been successfully drilled and tested, producing as much as 60 million standard cubic feet of natural gas per day. The test results exceeded initial expectations and could provide additional supply to support power generation and reduce reliance on imported fuels.

The Camago‑3 drilling marks the second major milestone under the $893-million Malampaya Phase 4 development program, aimed at sustaining gas production from the offshore field northwest of Palawan.

‘THREAT ACTORS’
Meanwhile, Philippine Defense Secretary Gilberto C. Teodoro, Jr. called for closer security cooperation with European nations, urging greater alignment in defense policies as Manila seeks to broaden its alliances amid heightened tensions with China.

Speaking at the Paris Defense and Strategy Forum on Wednesday, Mr. Teodoro said the Philippines and Europe face increasingly interconnected security challenges that require coordinated responses to uphold the international rules‑based order.

“We should be as creative as possible to converge and to work towards convergence to address threats and mitigate vulnerabilities,” he said in his keynote address, according to a transcript released by the Department of National Defense on Thursday.

“The threat actors that we face are increasingly intertwined,” he added, citing shared security concerns across Europe and the Indo‑Pacific involving “actors of similar persuasion.”

His remarks come as the Philippines seeks to deepen security engagement with the North Atlantic Treaty Organization, including discussions on aligning military capabilities to counter risks undermining global stability.

Mr. Teodoro’s visit to France also coincides with efforts by Manila and Paris to finalize a visiting forces agreement, which would enable greater military cooperation.

The Philippines has stepped up alliance‑building as it remains locked in a maritime dispute with China over competing claims in the South China Sea. The waterway is a major global trade route and is believed to hold significant energy resources.

Beyond its alliance with the US, Manila has expanded defense ties with Australia, Japan and New Zealand, with similar talks ongoing with the UK.

Mr. Teodoro said conflicts in the Middle East and Russia’s invasion of Ukraine underscore the need for cross‑regional cooperation, noting that global instability affects even countries not directly involved in the fighting. — Adrian H. Halili, Kenneth Christiane L. Basilio, Chloe Mari A. Hufana and S.J. Talavera