Philippine President Ferdinand Marcos Jr. has indicated that joint offshore oil and gas exploration between Manila and Beijing remains a “distinct possibility” before his term concludes in 2028. Speaking at a foreign media luncheon in Manila on August 14, 2026, the President noted that both nations have made progress in energy-related discussions, even as tensions continue to rise in the South China Sea.
Marcos emphasized that the Philippines needs to secure additional oil and gas supplies, stating that the nation must leverage available resources in the West Philippine Sea and other viable areas. He highlighted that the ongoing U.S.-Israel-Iran conflict has underscored the necessity for Manila to strengthen its national energy security. Earlier this year, in March, the President declared a “national energy emergency” following the closure of the Strait of Hormuz, which triggered a surge in fuel prices and provided an impetus for both countries to seek an agreement regarding disputed waters.
Diplomatic exchanges on the subject began in late March, during which both sides discussed managing maritime disputes alongside potential cooperation. Despite these efforts, the path to a deal remains complex. The Philippine Constitution mandates that the exploration and development of natural resources must remain under the full control of the state, limited to Filipino citizens or corporations with at least 60 percent local ownership. The Department of Foreign Affairs has reiterated that any future joint venture must strictly adhere to these legal and constitutional requirements.
The current administration has faced significant hurdles, including the intensification of disputes in the South China Sea. Since taking office, President Marcos has actively challenged Beijing’s actions in the exclusive economic zone (EEZ), implementing a transparency policy to publicize China Coast Guard maneuvers. Relations have been further strained by recent physical altercations, including a July 20 incident at Second Thomas Shoal where a Philippine official sustained a head injury after being struck with a baton by Chinese personnel. Additionally, two confrontations have occurred at Scarborough Shoal.
These tensions follow the 10th anniversary of the 2016 arbitral ruling from the court in The Hague, which invalidated China’s “nine-dash line” and affirmed that Second Thomas Shoal falls within the Philippine EEZ. While his predecessor, Rodrigo Duterte, halted exploration talks in 2022, Marcos and Chinese leader Xi Jinping agreed to resume discussions during a 2023 state visit. Although progress has been slow, the President maintains that the discussions have gained prominence and that the two sides are working through several outstanding issues.
