Saudi Arabia and UAE eye oil storage projects in Philippines

Saudi Arabia and the United Arab Emirates (UAE) have expressed interest in financing the construction of oil storage facilities in the Philippines. According to the Philippine Department of Energy (DOE), these projects would be funded by the respective oil-producing nations, relieving the Philippine government of construction costs.

During a Senate Committee on Energy hearing, DOE Oil Industry Management Bureau Director Rino Abad noted that Saudi Arabia has requested a concept note for a proposed storage hub with a target capacity of 50 million barrels. The UAE has also offered to build similar facilities. While these hubs would remain under foreign ownership and operate on a commercial basis, the DOE is seeking arrangements that guarantee the Philippines priority access or reserve rights to petroleum supplies during global energy market disruptions or crises.

The newly established Philippine Strategic Petroleum Reserve team is continuing discussions with Saudi officials to establish timelines and complete necessary documentation. The UAE is expected to be formally approached following the progress with Saudi Arabia.