The Philippines, heavily reliant on imported fuel, is looking to exploit oil and gas reserves in the disputed South China Sea, according to Philippine Ambassador to the US Jose Manuel Romualdez.
“Inviting US companies to invest in exploration and development and discussions with countries like Vietnam, which also have overlapping claims against China, are among possible courses of action,” Romualdez announced on March 5th.
A Calculated Approach
The Philippines is taking a “calculated” approach to resource exploration, Romualdez said, declining to elaborate on specifics beyond mentioning it would likely occur during President Ferdinand Marcos Jr.’s term, which ends in 2028. “It’s part of our energy package,” he explained, referring to a broader strategy to reduce the Philippines’ high energy costs and attract investors.
Security Concerns and Economic Prosperity
As the Philippines strengthens its security alliances in response to tensions with China, Romualdez emphasized the desire for those partnerships to translate into increased trade and investment. “While we have all these defense ties, the bottom line is economic prosperity,” he said. “If we don’t have economic security, we can make all these defense agreements and it won’t mean anything to us.”
China, with its own interest in the resource-rich waters, recently called on its military to adapt its maritime strategy for economic development, a move that could further escalate tensions with the Philippines.
Marcos Leverages International Influence
In a wide-ranging interview, Romualdez highlighted President Marcos’ efforts to leverage his growing international influence to secure contracts for the Philippines. Marcos has deepened security ties with the US in the past year, addressed the Australian Parliament, and is scheduled to be the keynote speaker at a regional security forum in May.
US Investment and ‘Ironclad’ Alliance
Prior to his departure, Marcos is scheduled to meet with US Commerce Secretary Gina Raimondo, among others. Raimondo reaffirmed the “ironclad” nature of the US-Philippines alliance and expressed the eagerness of US companies to do business with the Southeast Asian nation. She announced over $1 billion in new investments would be forthcoming, including in areas like solar energy and electric vehicles.
Raimondo will lead a delegation to Manila that includes executives from Microsoft, United Airlines, Google, and energy companies, aiming to strengthen economic relations and encourage investment in the Philippines.
Competition for Investment
While the strong US-Philippines relationship is an advantage, competition for investment among Southeast Asian countries is fierce. According to Romualdez, Marcos must demonstrate his government’s ability to create a favourable business environment by reducing bureaucracy and lowering electricity costs. High energy costs remain a major obstacle for investors, further incentivizing the Philippines’ push to explore its own energy resources.
“What’s ours is ours and we won’t stop. We will do it when we feel it is time.”
USA Jose Manuel Romualdez, Philippine Ambassador to the USA
Taking a Firm Stance
The Philippines is displaying a more assertive stance on resource exploration. A quote attributed to Romualdez in the article embodies this shift: “What’s ours is ours and we won’t stop. We will do it when we feel it is time.” This echoes a similar sentiment expressed earlier this year by the Philippine defense chief, who emphasized the urgency of resource exploration as a key gas field neared depletion.
Openness to Talks, But Not Control
While the Philippines is open to energy discussions with China, it maintains its position of not relinquishing control over any ventures. For Ambassador Romualdez, the time for appeasement is over. The Philippines plans to move forward with resource exploration within its exclusive economic zone, and will do so when it deems the time is right.
