Philippines urged to tap South China Sea reserves to ease energy costs despite Beijing tensions

Influential billionaire Ramon Ang wants Manila to disregard maritime tensions with Beijing and take advantage of untapped oil and natural gas reserves

But joint maritime patrols with the US would be required to prevent harassment by Chinese coastguard vessels during exploration, analysts say

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An attendant prepares to fill a customer’s vehicle with fuel at a petrol station in Manila. Proponents argue that the Philippines could subsidise fuel prices if it developed its own South China Sea energy reserves. Photo: AFP

Published: 9:00am, 29 May 2024Updated: 11:11am, 31 May 2024

Debate has resurfaced over the Philippines’ energy options in the South China Sea after influential billionaire Ramon Ang urged the government to harness untapped oil and natural gas reserves to help lower energy prices for struggling Filipinos.

While some analysts agreed that now was the right time to “quickly develop” the maritime region’s resources, others warned that “political considerations” must be taken into account given Manila’s territorial disputes with Beijing and the failure of prior joint energy agreements.

Ang, owner of petroleum firm Petron and president of the Philippines’ largest conglomerate by sales Top Frontier Investment Holdings, Inc., said on Monday that oil prices were cheaper in neighbouring countries due to government subsidies.

Malaysia, for instance, was able to subsidise oil prices because it had its “own oil production”, he said.

“We have a very big reserve in the West Philippine Sea. That’s why they are very interested in the Philippines. So let us not let go of it. We should protect our territory,” Ang said, seemingly referring to China.

Philippine billionaire Ramon Ang called for the Philippines to protect its “very big” energy reserves in the South China Sea. Photo: Twitter

China not only has competing claims with the Philippines in the South China Sea, but also with Malaysia, Brunei, and Vietnam. The West Philippine Sea is Manila’s name for part of the disputed waterway within its exclusive economic zone.