Analysis: Philippines Signals Openness to China Oil Cooperation as Energy Crisis Deepens

Manila Times published analysis on April 5, 2026, noting that the Philippines — under pressure from a deepening energy crisis driven partly by Iran-war disruptions to global oil supplies — had begun signaling openness to China for joint oil and gas exploration cooperation at Reed Bank and other features in the South China Sea. This represented a notable shift from Manila's publicly confrontational stance, and followed initial exchanges on energy cooperation at the March 27-28 BCM/FMC talks in Quanzhou, Fujian. Critics noted the Philippines faced a constitutional constraint: Article XII of the Philippine Constitution requires at least 60% Filipino ownership of resource extraction companies, making joint ventures with a Chinese state company structurally difficult without legislative action. Philippine energy officials noted that domestic gas fields, primarily the Malampaya field, were experiencing declining output, creating structural dependence on imports at a time when Iran-linked supply disruptions were pushing fuel prices up. The Marcos administration insisted any engagement on energy cooperation would not compromise sovereignty or the 2016 PCA ruling.