Philippine President Ferdinand Marcos Jr. takes part in a luncheon with foreign journalists in Manila, Philippines, Aug. 14, 2026.
Credit: Facebook/Bongbong Marcos
Philippine President Ferdinand Marcos Jr. says that joint offshore oil and gas exploration with China remains a “distinct possibility” before the end of his term in 2028, despite the recent intensification of their disputes in the South China Sea.
Speaking at a foreign media luncheon in Manila on Friday, Marcos said that Manila and Beijing were making progress in talks on the matter, and that the U.S.-Israel-Iran war had highlighted Manila’s need to shore up its energy security.
“The Philippines needs additional supplies of oil and gas, and we need to explore the possibilities that we have in the Philippines, in the West Philippine Sea, and wherever else we can [that] we can take advantage of,” he said, as per Rappler.
In March, Marcos told Bloomberg Television that the war in the Middle East and the resulting oil supply shock could provide an “impetus for both sides to come to an agreement” after years of friction in disputed waters. The interview aired on the same day that Marcos declared a “national energy emergency” due to the impacts of the closure of the Strait of Hormuz, which saw a sudden spike in fuel prices.
The two Asian countries then undertook “initial exchanges” on the topic during a meeting between diplomats in late March, which also involved discussions on how to manage disputes in the South China Sea.
“This discussion has gained prominence,” Marcos told reporters. “There were several issues from the beginning that we are slowly working through. And I can see the distinct possibility that there will be such joint explorations.”
Marcos did not mention when a deal could be reached, saying the discussions were still ongoing. “I think the sense that I get is that all parties involved want it to succeed, and that is always a very good sign,” he said.
Marcos’ predecessor Rodrigo Duterte terminated oil and gas exploration talks with China in mid-2022, with then-Foreign Secretary Teodoro Locsin saying that discussions had gone as far as “it is constitutionally possible to go.”
Marcos and Chinese leader Xi Jinping agreed to resume them during Marcos’ state visit to Beijing in early 2023, but have made very little progress due to the intensification of the disputes in the South China Sea. Since taking office, Marcos has openly challenged China’s behavior in Philippine-claimed waters, fortifying security relations with the United States and introducing a “transparency” policy that focused on publicizing the aggressive actions of the China Coast Guard in the Philippines’ exclusive economic zone (EEZ).
As I noted at the time of Marcos’ initial comment, joint exploration of offshore resources (let alone joint development) remains unlikely at the current juncture. Despite Marcos’ call for a “reset” in relations, recent months have seen a rise in tensions between the CCG and Philippine Coast Guard and navy vessels in disputed waters, which culminated on July 20 in a physical altercation between Chinese and Philippine personnel at Second Thomas Shoal in the Spratly Islands.
The Philippines said that one of its personnel sustained a head injury after being struck with a baton by CCG personnel who had deployed in a boat close to the BRP Sierra Madre, the grounded warship that serves as Manila’s outpost on the shoal. China accused the Philippines of attempting to ram the Chinese boat, and of spreading “false propaganda” about the incident. This was followed by two confrontations at Scarborough Shoal, some 650 kilometers to the northeast.
The recent tensions appear to have grown out of the Philippine commemorations of the 10th anniversary of the arbitral ruling handed down by a court of arbitration in The Hague. The ruling found that China’s expansive “nine-dash line,” which asserts Beijing’s sovereignty over nearly all of the South China Sea, had no standing under international law. It also found that Second Thomas Shoal is part of the Philippines’ EEZ and continental shelf. China has dismissed the ruling as “null and void.”
Even if China and the Philippines could reach a deal on joint oil and gas exploration, this would have to surmount considerable constitutional and political hurdles in Manila.
The Philippine Constitution states that “the exploration, development, and utilization of natural resources must remain under the full control and supervision of the State, and may be undertaken only by the State itself or through Filipino citizens or corporations that are at least 60 percent Filipino-owned.”
After Marcos’ initial comment in March, the Department of Foreign Affairs (DFA) stated that any future joint oil and gas exploration with China would “be made solely in accordance with the Philippine Constitution and the country’s laws, jurisprudence and regulations, and in full assertion of its sovereign prerogatives.”
