Philippines receive 700,000 barrels of Russian crude amid energy emergency
The tanker Sara Sky delivered more than 700,000 barrels of Russian ESPO crude to the Petron refinery in Limay on Monday, the first such delivery in five years, as Manila declared an energy emergency.
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The Sara Sky, a tanker flying the flag of Sierra Leone, docked Monday at the port of Limay, near Manila, carrying more than 700,000 barrels of Russian ESPO (East Siberia-Pacific Ocean pipeline) crude. The cargo is destined for Petron, the Philippines' only oil refinery. The delivery follows Manila's declaration of an energy emergency, against a backdrop where Trump extended the Iranian ultimatum as oil rebounded to $100 per barrel. According to several media reports, this marks the first delivery of Russian crude to the archipelago in five years.
The Strait of Hormuz: a chokepoint for Asian supplies
The Philippine archipelago is heavily dependent on fuel imports, costs for which have surged since the start of the Middle East conflict, triggered by US-Israeli strikes on Iran on February 28. Iran is effectively blocking the Strait of Hormuz, through which 20% of global hydrocarbon production normally transits, much of it destined for Asia. Oil prices have meanwhile fallen after the International Energy Agency (IEA) declared itself ready to release additional strategic reserves. President Ferdinand Marcos stated Wednesday that Manila estimated it had approximately 45 days of remaining reserves at the time.
"We have tried to explore other sources that are not affected by the ongoing war in the Middle East," the head of state said at a press conference. "No option is off the table. We are considering all possibilities." The previous week, Ramon Ang, Petron's chief executive, had told AFP that the company was "in talks" for a possible purchase of Russian oil. Contacted Thursday, the group declined to confirm the arrival of the cargo.
US sanctions relaxation
The transaction benefited from Washington's decision to ease certain sanctions, allowing the purchase of Russian oil currently at sea until April 11. This measure opened a window for buyers to source Russian crude without violating existing restrictions. The Sara Sky was visible Thursday at anchor in the port of Limay, according to an AFP journalist on the scene.
Emergency fund and coal ramp-up
The Philippine Department of Energy unlocked an emergency fund of 20 billion pesos (287 million euros) on Thursday. Energy Minister Sharon Garin described the package as a "proactive measure" aimed at ensuring the country's fuel supply. The archipelago also plans to increase output from its coal-fired power plants to keep electricity costs affordable, according to announcements made the previous day.
