Philippines Looks To US And Allies For Support In South China Sea Energy Exploration

The Philippines expects the U.S. and its allies to play a vital role in its attempts to identify energy resources in the disputed South China Sea. The country has been seeking to parlay its strengthening security ties with Washington into a broader economic advantage, Jose Manuel Romualdez, the Philippine Ambassador to the U.S., said. When the opportunity comes, they will begin researching it, and they have the option of determining how to secure the expedition, Romualdez stated in a discussion in Manila. They will be closely working with the allies, not just the U.S. but Australia and Japan.

The Philippines has been exploring many options to tap the resource-rich waters of the South China Sea, which China claims to be its entirety. The water body is estimated to possess a significant amount of oil and gas, per the U.S. Energy Information Administration. The action plan includes inviting American businesses to invest in exploration and development activities and conversations with governments like Vietnam, which additionally holds overlapping claims with China, he said on March 5.

The Philippines has imported nearly all its fuel requirements and has been trying for many years to start energy exploration in disputed waters, including through a collaboration with China. However, negotiations between Beijing and Manila have stalled amid heightened tensions, with the coast guard vessels clashing hard at sea.

The ambassador said the Philippines and its allies seek to strengthen diplomatic movements. He declined to disclose further specifics on the energy plan other than to indicate that it will most likely occur during President Ferdinand Marcos Jr.’s tenure, which ends in 2028.

He noted that it is part of the nation’s energy package, which includes a strategy to reduce power costs, which are among the highest in the region, to attract investors. As the Philippines starts to focus on building security alliances amid increased tensions with Beijing, it desires such collaborations to yield more trade and investment, explained Romualdez.

While the defence ties are in place, the conclusion is economic prosperity. If financial security is lacking, we can have the defence deals, which will not mean anything to them, the envoy, a cousin of Marcos, mentioned. China is also highly enthusiastic about enjoying the benefits of the resource-rich waters.

On the other hand, President Xi Jinping has urged the military to connect its strategic marine vision with economic development, potentially intensifying the present dispute with the Philippines. In an interview before the U.S. trade and investment mission this week, Romualdez stated that Marcos focuses on using his global influence to secure lucrative deals for the country. Marcos has worked hard over the last year to improve security relations with America.

Last month, the Philippine leader addressed Australia’s parliament. He will be the keynote speaker at the regional security forum in May. On Monday, Marcos plans to meet Gina Raimondo, the U.S. Secretary of Commerce, before he heads to Germany for scheduled meetings with Olaf Scholz (the Chancellor) and other Southeast Asian leaders.

Raimondo will lead a team to Manila that includes approximately 20 U.S. executives from United Airlines Holdings, Microsoft, Google, and a few energy companies. The team aims to strengthen economic relations and promote investment in an increasingly crucial ally. Raimondo will then travel to Thailand, hoping to strengthen ties in areas such as supply chain diversification.

While the Philippines’ close ties with the U.S. are beneficial, competition for investment among Southeast Asian countries is fierce. The envoy stated that Marcos must demonstrate that his government can provide an advantageous business environment, including reduced red tape and lower electricity costs.

Per Romualdez, high electricity costs remain one of the biggest obstacles for investors and are one of the driving forces behind the Philippines’ push to look into its energy resources.

Earlier this year, Marcos’ defence chief stated that resource extraction in the disputed waters is becoming increasingly necessary for the Philippines as a critical gas deposit approaches exhaustion. Last month, the country’s foreign affairs secretary indicated an openness to energy discussions with Beijing but stressed that Manila would not hand over control of any of its ventures to China. For Romualdez, the time to keep being soft with Beijing is officially over.

Reference: Japan Times

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Source: Maritime Shipping News