Philippine President Calls Joint Oil Exploration With China a Distinct Possibility, Despite Ongoing Sea Clashes

Philippine President Ferdinand Marcos Jr. (right) held talks with Chinese Ambassador to the Philippines Jing Quan (center) at Malacanang Palace in Manila, on July 21, 2026. (Philippines’ Presidential Communications Office (PCO) / AFP)Philippine President Ferdinand Marcos Jr. said Friday there is a “distinct possibility” that the Philippines and China could undertake joint oil and gas exploration in the South China Sea, amid recent confrontations between the two countries in the South China Sea.Marcos told foreign journalists that talks with Beijing had progressed as Manila looks to shore up its energy security amid recent supply disruptions and price spikes.“I can see this new possibility that there will be such joint exploration,” he said, according to a Philippines News Agency press release in response to a question about possible joint oil and gas exploration with China.“The Philippines needs additional supplies of oil and gas, and we need to explore the possibilities that we have,” he said, adding that there were several issues that they were slowly working through.“The sense that I get is that all parties involved want it to succeed, and that is always a very good sign,” he said.He said outstanding issues remain, including the terms of reference for any eventual arrangement, but reiterated: “I can see the distinct possibility that there will be such joint exploration.”The Philippines and China resumed high-level talks in March over the contested waterway, taking preliminary steps toward energy cooperation. The two countries have discussed joint exploration for years, including near the Reed Bank, but previous rounds of talks have collapsed repeatedly over disputes about sovereign rights to the area.Talks Proceed Despite ConfrontationsThe renewed push for cooperation comes despite a string of hostile encounters between the two countries’ vessels in recent weeks. The Philippine Navy said that on July 20, China Coast Guard personnel attacked a Filipino sailor with a wooden baton during a confrontation near a disputed shoal. Four days later, on July 24, Chinese Coast Guard vessels subjected Philippine government ships to water cannon blasts and dangerous maneuvers for a second consecutive day, according to the state-run Philippine News Agency.Beijing claims sovereignty over nearly the entire South China Sea—a waterway carrying more than $3 trillion in trade annually—despite a 2016 ruling by the Permanent Court of Arbitration in The Hague that invalidated those claims in a case brought by Manila. China has rejected the ruling and continued to assert its expansive claims regardless.Marcos said efforts to manage tensions have been ongoing, with every incident in the West Philippine Sea providing an opportunity to identify what went wrong and prevent similar incidents, the Philippine News Agency release said.“We try to bring the level of tensions, we try to bring even sometimes the language that is being exchanged down a notch,” Marcos said.Marcos, however, sought to draw a line between the security disputes and economic ties, dismissing any suggestion that the Philippines is pulling away from Beijing.“I don’t think that’s in any policy, in any policy statement, that we are distancing ourselves from China,” he said, adding that China is “one of the biggest investors still in the Philippines.”He also denied that Manila had entered into any special arrangement requiring the Philippines to seek Beijing’s permission before conducting resupply missions in the South China Sea, insisting the country had not ceded any of its rights or weakened its position.Reuters contributed to this report.