UAE and Saudi Arabia to Enhance Philippines' Oil Security

Sep 4, 2026

87 min

Sep 4, 2026 08:31

UAE, Saudi Arabia step up support for Philippines’ oil security

## Gulf Nations to Fund Oil Storage

The United Arab Emirates and Saudi Arabia have proposed funding the construction of oil storage facilities in the Philippines. This initiative aims to bolster the country's energy security and provide strategic reserves to handle potential fuel supply disruptions.

## Senate Hearing Insights

During a recent Senate committee on energy hearing, Rino Abad, director of the Department of Energy's oil industry management bureau, confirmed Saudi Arabia's interest in establishing a storage hub. The proposed facility would be fully funded by Saudi Arabia. Similarly, the UAE has expressed a willingness to build a storage facility, which would remain under UAE ownership but offer the Philippines access to petroleum products during emergencies.

## Priority Access During Crises

Philippine officials are negotiating terms to ensure the country receives priority access to these reserves in times of global supply crises. This arrangement is crucial for maintaining fuel availability if international disruptions occur.

## Proposed Storage Capacity

Saudi Arabia's proposed facility could have a capacity of 50 million barrels. The Philippine government has already submitted a concept note to Saudi Arabia, and discussions are ongoing to finalize the details. The UAE is next in line for formal discussions.

## Strategic Importance

The UAE and Saudi Arabia have been key suppliers of oil to the Philippines, providing alternative routes that bypass the Strait of Hormuz, a critical shipping corridor. Establishing additional storage capacity is seen as a buffer against potential disruptions in these routes.

## Domestic Efforts

Separately, the Philippine National Oil Co. is developing a government-owned strategic petroleum reserve in Bataan, expected to be operational next year with an initial capacity of one million barrels, eventually expanding to 15 million barrels.

## Call for Expedited Action...

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