Shirin Bhandari | 2026-04-22

The Philippine Department of Foreign Affairs (DFA) has declared that any joint oil and gas arrangement with China must comply strictly with the Philippine Constitution and existing law, drawing a firm legal line around the country’s sovereign rights as Manila and Beijing cautiously reopen energy talks.

"Any decision to pursue, structure, or conclude an agreement on oil and gas cooperation, with China or any other foreign government, will be made solely in accordance with the Philippine Constitution and the country's laws, jurisprudence and regulations, and in full assertion of its sovereign prerogatives," the Department of Foreign Affairs said in an April 12 statement.

The clarification followed an interview President Ferdinand Marcos Jr. gave to Bloomberg Television in late March. Marcos said the regional energy crisis could provide "impetus for both sides to come to an agreement" on joint oil and gas development in contested waters, a prospect previously shelved for years over sovereignty disputes.

Energy pressure

The Philippines declared a national energy emergency the same day, as a surge in global oil prices since late February pushed the country's petrol costs to among the steepest increases recorded anywhere in the world.

"That's something we've been talking about for a great deal, but territorial disputes are getting in the way of that," Marcos said, adding that the government is exploring and pursuing every available option to address the crisis.

The two nations held bilateral meetings in Quanzhou, Fujian Province, in late March. The talks came shortly after Marcos announced a successful test at the Camago-3 well, a deepwater natural gas reserve within the Malampaya field, estimated to produce up to 60 million cubic feet of gas per day. It was the first time potential exploration in the South China Sea had been discussed since previous talks were terminated in 2022, a hiatus marked by persistent maritime friction.

Military warning

However, these negotiations are unfolding against a backdrop of ongoing tensions. In recent years, China's coast guard and maritime militia have carried out repeated disruptive maneuvers against Filipino fishermen and Philippine Coast Guard vessels, particularly within the Philippines' exclusive economic zone.

The Philippine military was cautious shortly after the recent talks.

Rear Adm. Roy Vincent Trinidad, Philippine Navy spokesperson for the West Philippine Sea, said Beijing had not earned the trust required for such negotiations.

"The Chinese Communist Party is not a reliable partner on the negotiating table," Trinidad told reporters. "Historically, we have observed a difference in the way they speak and their actions on the ground. These are facts which are recorded."

Legal barrier

A core obstacle is the Philippine Constitution, which reserves control of natural resources for the state. In 2023, the Philippine Supreme Court nullified a tripartite joint marine seismic agreement among the Philippines, China and Vietnam, ruling it unconstitutional.

Former Supreme Court Associate Justice Antonio Carpio identified the fundamental impasse: China will not operate within a legal framework that recognizes Philippine sovereign rights.

"There's no problem as long as CNOOC [China National Offshore Oil Corporation] will recognize that that is our exclusive economic zone," Carpio told news channel ANC.

"But that is the problem, because CNOOC will not recognize [Philippine jurisdiction]," he added.

He separately warned that accepting China’s terms would be like "committing suicide."

Strategic risks

Beijing's public response has centered on regional stability rather than specific maritime concessions. Asked on March 19 about energy security cooperation with the Philippines, Chinese Foreign Ministry spokesman Lin Jian stated: "China stands ready to strengthen coordination and collaboration with Southeast Asian countries and jointly address energy security issues."

Analysts warn that energy pressure alone cannot overcome the trust deficit.

Writing in The Interpreter, Don McLain Gill of the Lowy Institute argued that rushing into any arrangement without achieving the bare minimum of trust-based relations is unlikely to succeed.

He concluded that any such venture risked rewarding Beijing's pattern of maritime coercion.

"Joint exploration with China in the West Philippine Sea would reward bad behavior and set a dangerous precedent," he wrote.