‘Energy exploration talks with China moving forward’

MANILA, Philippines — President Marcos confirmed that the possible joint energy exploration between Manila and Beijing in the disputed South China Sea is “moving forward,” as he expressed optimism about greater economic cooperation between the two nations despite maritime disputes.

He said the discussion on the joint exploration for oil and gas, which has been going on for many years, has “gained prominence.”

“The discussion gained prominence (in) recent past when we had our energy emergency. And we started to think, well, we have to find ways so that, should something like this happen again, where our supply of petroleum products is cut, the prices go up and the effects that we cast on the daily lives of our people and the economy of the country is deeply affected. We have to find new ways,” he said at a media forum organized by the Foreign Correspondents Association of the Philippines in Manila yesterday.

“And where we are now, I think we have moved forward,” the President added, noting that there were several issues that both parties are “slowly working through.”

“I can see the distinct possibility that there will be such joint exploration. In terms of reference on what we are going to do. Like any joint venture, or if it is merely commercial, you have to define between yourselves and between the parties the terms of reference. That’s what we are doing now. And we’re working through that, and we’re making progress,” he said.

Asked whether it is possible to happen within his term, Marcos said he could not give a definite timetable as this would depend on how the discussions go.

“I think the sense that I get is that all parties involved want it to succeed, and that is always a very good sign,” Marcos said.

No special arrangement

The President, however, clarified that there was no special “arrangement” between the Philippines and China pertaining to rotation and resupply missions in Ayungin Shoal in the West Philippine Sea.

“I hesitate to use the word arrangement because we’re not going into any arrangement with everyone. We’re just conducting ourselves, according to the standard practice, the vessels sailing in the West Philippine Sea, and for that matter, in other seas,” he explained.

“So there’s no special arrangement that we… somehow the implication is that we have to ask for permission or that we have to give up some kind of, some of our rights. That’s not the case at all,” the Chief Executive stressed.

The Department of Foreign Affairs had confirmed the existence of a “provisional understanding” with China – not a provisional agreement – over routine rotation and resupply missions to BRP Sierra Madre in Ayungin Shoal, but stressed it does not involve seeking permission from the Chinese for the RORE.

‘Iron Triangle’

Meanwhile, the possible militarization of Panatag Shoal could complete China’s “Iron Triangle” in the South China Sea, Philippine Coast Guard (PCG) spokesman on the West Philippine Sea Rear Admiral Jay Tarriela warned yesterday.

Tarriela described Panatag Shoal as the “last unfinished vertex” of the so-called Iron Triangle that closes Chinese military-armed outposts in the Paracel and Spratly Islands.

If Beijing gains control of the shoal, the rear admiral warned that it would have consequences for other countries that use the maritime area for global trade.

According to PCG data, the South China Sea carries roughly one-third of global shipping. In 2024, $6.4 trillion in goods transited in its straits.

The PCG said that of these products, the South China Sea carried 40 percent of the world’s traded petroleum, amounting to one-third of global liquefied natural gas shipments.

“When the Red Sea was disrupted, rerouting alone added 0.7 percent to global core goods inflation,” said Tarriela. “Imagine a permanent gatekeeper astride the world’s busiest sea lane – with a record of weaponizing access.”

Tarriela added that the establishment of a military outpost in Panatag would give Beijing leeway to regulate passage and “suppress freedom-of-navigation operations” in the corridor. — Andrew Ronquillo