Philippines explores emergency oil access in Indonesia and Thailand
PNOC Exploration has signed preliminary agreements to study access to overseas petroleum reserves through oil-ticketing pilot projects.
The Philippines is considering arrangements to access emergency petroleum reserves in Indonesia and Thailand as the prolonged Middle East war disrupts fuel supplies worldwide. State-run PNOC Exploration Corp. has signed letters of intent with PT Interport Mandiri Utama of Indonesia and The Shell Co. of Thailand Ltd. to examine possible oil-ticketing cooperation.
The proposed pilots would assess whether existing storage facilities in the two countries could provide reserves for the Philippines during supply interruptions. Oil ticketing involves paying for access rights to stocks held abroad in an emergency, under conditions agreed by the participants.
The Economic Research Institute for ASEAN and East Asia (ERIA) and the Indonesian Business Council also signed the agreements and will provide knowledge support. The pilot proposals were unveiled at the ASEAN Business and Investment Summit in Manila.
The initiative runs alongside Philippine efforts to establish government-maintained reserves. PNOC aims to finish its first storage tank by end-2027. Critics have warned that construction and maintenance costs could ultimately fall on consumers; overseas access could offer an alternative to building facilities and buying additional stocks upfront.
An ERIA study considers combining national reserves, ticketing and shared stockpiles. It estimates annual regional stockholding savings of about US$610 million if joint reserves increase from 10 to 30 days without changing overall stock levels.
