The Philippines and China have resumed discussions under the 11th Bilateral Consultation Mechanism (BCM) in Fujian, focusing on developments in the West Philippine Sea and progress on a proposed Code of Conduct (COC), as global oil prices surge amid tensions in the Middle East.
Foreign Affairs Undersecretary for Policy Leo Herrera-Lim confirmed that the two-day talks are underway, noting that both sides are exploring possible areas of cooperation, particularly on energy security.
Herrera-Lim described the discussions as “exploratory,” aimed at exchanging views on potential cooperation, including the impact of rising oil prices on the region. He said both countries are looking at opportunities involving oil, fertilizer, and food supply, as well as the possibility of using the energy crisis to strengthen regional energy security.
The talks come as President Ferdinand Marcos Jr. signaled openness to reviving joint energy exploration discussions with China. Earlier this week, he told Bloomberg that Manila is willing to re-engage Beijing on potential projects in the South China Sea.
The Chinese Embassy in Manila also said negotiations on possible joint oil and gas exploration have made “positive progress.”
However, Herrera-Lim emphasized that oil exploration remains a long-term undertaking and is unlikely to yield immediate results, noting it could take five to ten years before any output is realized. He added that China’s refining capacity and potential cooperation in renewable energy could also be part of future discussions.
The BCM is expected to sustain momentum toward finalizing a long-awaited Code of Conduct in the South China Sea, which the Department of Foreign Affairs hopes to conclude within the year.
Discussions will also cover a proposed memorandum of understanding on Coast Guard-to-Coast Guard cooperation, with the Philippine side awaiting China’s feedback.
Held back-to-back with the 24th Philippines-China Foreign Ministry Consultations, the meetings are taking place in Quanzhou, Fujian province, from March 27 to 28. The Department of Foreign Affairs described both mechanisms as key platforms for candid dialogue and exploring cooperation in non-sensitive areas.
The BCM has long served as a venue for addressing maritime issues, including incidents in the West Philippine Sea, confidence-building measures, and potential joint initiatives.
Despite renewed dialogue, territorial tensions remain a major challenge. China continues to assert sweeping claims over most of the South China Sea, including areas within the Philippines’ exclusive economic zone, despite a 2016 arbitral ruling that invalidated those claims.
Energy prospects remain significant. Data from the Department of Energy indicates that the West Philippine Sea may hold over six million barrels of oil and more than seven billion cubic feet of natural gas, with areas like Recto Bank (Reed Bank) seen as particularly resource-rich.
