Marcos Says War May Spur Energy Talks With China in Disputed Sea

Ferdinand Marcos Jr. Photographer: Lisa Marie David/Bloomberg Photo by Lisa Marie David /Bloomberg

Article content

(Bloomberg) — Philippine President Ferdinand Marcos Jr. is open to restarting talks with Beijing on a joint oil and gas project in a disputed area of the South China Sea, saying the war in Iran may provide the impetus for a breakthrough.

Article content

Marcos and Chinese President Xi Jinping in 2023 agreed to resume discussions on a joint oil and gas development in the waterway, which had been stalled for years.

Article content

Article content

Article content

“That’s something we’ve been talking about for a great deal, but territorial disputes are getting in the way of that,” Marcos said in an interview with Bloomberg Television’s Haslinda Amin on Tuesday at the presidential palace in Manila, when asked about the possibility of discussions with Beijing.

Article content

Article content

“Maybe this provides impetus for both sides to come to an agreement,” Marcos, 68, said, referring to the conflict in the Middle East. “That’s something we are exploring. Everything that might be of help, we are certainly pursuing.”

Article content

The remarks signal a possible further easing of tensions between the Philippines and China, which had ramped up after Marcos took office in 2022. Marcos had bolstered military ties with the US to help safeguard the nation’s claims in the South China Sea, leading to repeated clashes with Chinese ships deploying water cannons against Philippine ships and crew.

Article content

The past few months have seen fewer such incidents in the resource-rich waterway as economic relations improve between the countries. The current energy crisis is also putting Marcos in a tough spot as the Philippines looks to secure supplies, potentially making joint development more attractive. In 2023, the nation began importing liquefied natural gas for the first time as production at its main Malampaya gas field dwindled.

Article content

Article content

Philippine-listed PXP Energy Corp., which holds a service contact in South China Sea’s Reed Bank, has previously held talks with China National Offshore Oil Corp. for joint possible development. But talks haven’t gone anywhere for more than a decade, with China previously blocking attempts to explore in the area.

Article content

The Philippines is also in talks with China on fuel and fertilizer, according to Marcos.

Article content

“They’ve been very helpful with fertilizers,” he said. “We’ve always tried to differentiate territorial disputes from our trade arrangements,” he added.

Article content

The Philippines is exploring the possibility of sourcing crude oil from Russia too, Marcos added. 

Article content

Asked whether he supported the US-Israel war in Iran, Marcos said “we never want war.”

Article content

“Our foreign policy is very simple: it’s peace and national interest,” he said.

Article content

The military alliance between the Philippines and US has strengthened under Marcos, who allowed US troops to access more Philippine bases and deploy missile systems. 

Article content

Despite the Iran war, the Philippines has not seen “a significant draw-down in terms of the activities of American forces here,” Marcos said. “Again, the critical element is how long this war is going to last.”

Article content

“We’re watching, waiting, hoping and praying that this ends soon and that we go back to some kind of normal, whatever that normal will be,” he said.

Article content

—With assistance from Cecilia Yap, Neil Jerome Morales, Claire Jiao and Manolo Serapio Jr..

Article content