Abu Dhabi firm in talks to supply oil to PH
State-run Abu Dhabi National Oil Company (Adnoc) is exploring a long-term oil supply agreement with the Philippines, alongside plans for a strategic petroleum depot in Subic or La Union.
Talks for these prospective partnerships took place during a meeting between a Philippine economic delegation and Adnoc officials on Jan. 12, ahead of the signing of the Philippines-United Arab Emirates (UAE) free trade agreement.
Trade Secretary Cristina Roque and Finance Secretary Frederick Go met Adnoc chair Sultan Ahmed Al Jaber to discuss partnership opportunities in the downstream oil and gas sector, including more permanent and aggregated supply contracts.
Adnoc also intends to build a petroleum storage facility, which, if realized, would strengthen the Philippines’ energy security and supply resilience, according to the Department of Trade and Industry (DTI).
These prospective projects are expected to benefit from the recently finalized Comprehensive Economic Partnership Agreement (Cepa) between the UAE and the Philippines, marking Manila’s first trade pact with a Middle Eastern country.
“Through the Philippines–UAE Cepa, we seek to build long-term partnerships with UAE companies that will strengthen energy security and expand opportunities for Filipino workers and businesses,” Go said.
PH ‘ready and open’
Adnoc already has a presence in the Philippines through its logistics arm, Adnoc Logistics and Services, which supports the country’s first liquefied natural gas import terminal in Batangas.
It has also previously supplied fuel through spot tenders with local firms such as the Lopezes’ First Gen Corp. and Ramon Ang’s San Miguel Corp.
Roque said the Philippines is “ready and open” for major foreign investors like Adnoc.
She cited the Downstream Oil Industry Deregulation Act, which allows 100-percent foreign ownership in refining and distribution.
Foreign firms like Adnoc are also expected to benefit from recent policy reforms, including expanded fiscal incentives under the CREATE MORE Act and the new law extending the maximum land lease period for foreign investors to 99 years.
