Philippines-China Energy Talks: South China Sea & Oil Crisis Impact

Philippine President Ferdinand Marcos Jr. Indicated a willingness to resume joint energy exploration talks with China in the South China Sea, citing the potential for the ongoing conflict in the Middle East to serve as a catalyst for agreement. The statement, made during an interview with Bloomberg News on March 24, 2026, comes as rising tensions in the region contribute to a global oil and energy crisis.

“That’s something we’ve been talking about for a great deal, but the territorial disputes… acquire in the way of that. Maybe this will provide the impetus for both sides to approach to an agreement,” Marcos said, according to a readout of the interview. He was responding to a question about developing gas resources with China in the disputed waters.

The possibility of renewed discussions centers on areas like Reed Bank, where previous talks have stalled. The Philippines asserts sovereign rights within its exclusive economic zone in the South China Sea, a position challenged by China’s expansive territorial claims. Manila refers to these waters as the West Philippine Sea.

Although previous statements from both Beijing and Manila under the Marcos administration have not explicitly mentioned joint energy development, the current global energy situation appears to be shifting the calculus. The Straits Times reported that Marcos believes the war in Iran may provide the impetus for a breakthrough in negotiations.

The Marcos administration has simultaneously strengthened its security alliance with the United States, bolstering its defense capabilities in the South China Sea. This has led to confrontations with Chinese vessels, including instances of water cannons being used against Philippine ships. However, recent months have seen a decrease in such incidents, coinciding with improving economic relations between the two countries.

The Philippines began importing liquefied natural gas in 2023 as production from its Malampaya gas field declined, increasing the country’s vulnerability to energy supply disruptions. This growing need for energy security may be contributing to the renewed openness to dialogue with China, despite ongoing territorial disputes.

Chinese Ambassador Jing Quan presented his credentials to President Marcos on December 11, 2025, signaling continued diplomatic engagement between the two nations. However, no specific date for resumed talks has been announced, and the outcome remains uncertain.