The Philippine government is negotiating a major energy security pact with the Abu Dhabi National Oil Company (ADNOC), aiming to secure stable fuel supplies and attract critical investment to meet soaring domestic demand. The high-level talks, held Monday, seek to transform a sporadic trading relationship into a formal, long-term partnership under a new bilateral trade agreement.
Leading a Philippine economic delegation, Department of Trade and Industry (DTI) Secretary Cristina A. Roque and Finance Secretary Frederick D. Go met with UAE Minister of Industry and Advanced Technology and ADNOC Chairman H.E. Sultan Ahmed Al Jaber. The core objective is to lock in aggregated supply contracts and encourage ADNOC to expand its physical presence in the Philippine downstream oil and gas sector.
“Our engagement with ADNOC is part of the Philippines’ continuous efforts to secure a reliable, affordable, and competitive energy supply,” stated Secretary Go. He emphasized the strategic goal of using the Philippines-UAE Comprehensive Economic Partnership Agreement (CEPA) to “build long-term partnerships with UAE companies that will strengthen energy security and expand opportunities for Filipino workers and businesses.”
The Philippines, which relies heavily on imported refined petroleum products, is pushing for deeper cooperation to shield its economy from volatile global oil prices and ensure supply for its rapidly growing economy. Secretary Roque directly pitched the country’s liberalized investment rules, specifically citing Republic Act 8479, which permits 100% foreign ownership in oil refining and distribution.
To sweeten the deal, the delegation outlined recent landmark reforms designed to attract global giants like ADNOC. These include the CREATE MORE Act, offering enhanced fiscal incentives like income tax holidays and VAT exemptions on capital equipment imports. Additionally, new rules allowing foreign investors to lease private land for up to 99 years were highlighted as a significant liberalization of the investment landscape.
ADNOC is not a new player in the Philippine market. Its logistics arm already supports the country’s first Liquefied Natural Gas (LNG) import terminal in Batangas. However, current transactions with local firms like First Gen and San Miguel have largely been through spot tenders. The Philippine government is now aggressively pushing for more permanent and structured supply agreements to ensure greater market stability.
The discussions, framed within the broader Philippines-UAE CEPA, concluded with mutual optimism for finalizing ADNOC’s investment plans. A successful deal would mark a significant step in the Philippines’ strategy to formalize strategic energy alliances and diversify its sources of fuel amid an ongoing transition to a more secure energy future.#
