Japan and Philippines formalize partnership to develop Philippines' first national strategic oil reserve
Type: Partnership · Technology: Oil Gas · Country: Philippines · Announced: 2026-06-16
Japan and the Philippines formally agreed in June 2026 to cooperate on building the Philippines' first national strategic oil reserve under the Partnership for Wider Energy and Resources Resilience in Asia (PWERRA) framework. The partnership involves Japan's Ministry of Economy, Trade and Industry and Philippine state entities Philippine National Oil Company (PNOC) and Maharlika Investment Corp leading implementation. Japan's contribution will flow through technical assistance, feasibility studies, and capacity-building programs, with a technical mission expected to visit the Philippines before the end of 2026. The project aims to address the Philippines' vulnerability to global oil supply disruptions, particularly following the closure of the Strait of Hormuz which supplies 97.4% of the country's crude oil imports. PNOC will provide technical expertise while Maharlika Investment Corp evaluates financing structures, with phased rollout including feasibility studies and site evaluations currently underway.
Counterparties
- Japan Bank for International Cooperation (Lender)
- Japan Ministry of Economy, Trade and Industry (Partner)
- Philippine Department of Energy (Partner)
- Japan Organization for Metals and Energy Security (Partner)
- Philippine National Oil Company (Developer)
- Maharlika Investment Corp (Investor)