MANILA: The Philippines and China have resumed talks on the disputed South China Sea, exploring potential oil and gas cooperation amid an energy supply crisis in the Middle East.
China and the Philippines have been at odds for decades over parts of the strategic waterway, which is believed to hold significant reserves of oil and gas. China claims nearly the entire sea — a position that was rejected in 2016 by an international arbitration tribunal in The Hague, which ruled in favor of the Philippines.
While Beijing did not accept the ruling, it established with Manila the Bilateral Consultation Mechanism on the South China Sea in 2017.
As tensions have been flaring repeatedly in recent months, including confrontations between coast guard vessels and disputes over access to fishing grounds, the talks that took place in China’s Quanzhou over the weekend were the first such meeting since January 2025.
“Recognizing current global uncertainties, especially developments in the Middle East, both sides discussed the importance of stable access to energy and fertilizers, as well as potential cooperation in green and renewable energy,” the Department of Foreign Affairs said.
They also discussed “practical measures that are consistent with Philippine law and policy to increase confidence in the maritime domain,” including “initial exchanges on potential oil and gas cooperation.”
The meeting took place days after President Ferdinand Marcos Jr. declared a state of national emergency over energy supply disruptions caused by the US-Israeli war on Iran, which has closed the Strait of Hormuz — the main route for Asia’s crude imports.
As the Philippines faces an energy crisis, Marcos said in an interview with Bloomberg that he was open to talks with Beijing on joint energy exploration in the South China Sea, and that the current situation in the Middle East might prompt both countries to seek an agreement.
According to a 2013 report by the US Energy Information Administration, portions of the South China Sea that fall within the Philippine Exclusive Economic Zone could hold up to 5.4 billion barrels of oil and 55 trillion cubic feet of natural gas.
Plans to cooperate with the Chinese in the resource-rich waterways were initially discussed in 2018, during the presidency of Rodrigo Duterte, when the two countries agreed to establish an intergovernmental steering committee for a possible joint exploration.
The Duterte administration terminated the talks in 2022, citing sovereignty concerns.
