Petron Corp., the only oil refiner in the Philippines, is seeking permission from the United States (US) government to process Russian crude as the company attempts to bypass supply disruptions triggered by conflict in the Middle East.

The move comes as the Sierra Leone-flagged tanker Sara Sky arrived at the Port of Limay in Bataan this week, carrying approximately 700,000 barrels of Eastern Siberia-Pacific Ocean blend crude. Shipping documents identified Petron as the consignee for the cargo, which marked the first arrival of Russian oil to the Philippines in five years.

Lubin B. Nepomuceno, Petron general manager told a Senate hearing on Thursday, March 26, that the company intends to seek a formal waiver from the US Treasury Department to finalize the purchase. While the Philippines is not a member of the Group of Seven, Petron’s reliance on international banking and insurance services—which are subject to Western sanctions—necessitates a clearance from Washington to avoid secondary penalties

“Recently, Petron managed, albeit with great difficulty, to procure additional crude and finished products,” Nepomuceno said.

He noted that the government may need to consider securing waivers similar to those granted to India to allow the continued importation of Russian supply.

The Bataan refinery, which provides about 40 percent of the country’s fuel requirements, is designed to process the specific ESPO grade arriving from Russia's Kozmino port.

Historically, Petron sourced approximately 98 percent of its crude from the Middle East, but those routes are now threatened by the closure of the Strait of Hormuz amid the war between Israel and Iran.

President Marcos declared a national energy emergency on Wednesday, authorizing the government to tap a ₱20 billion fund to secure fuel stocks.

Marcos told a briefing that the administration is exploring all available sources, including those outside traditional Middle Eastern partners, to ensure the country’s inventory lasts beyond the projected 45-day window.

The US Treasury recently issued a temporary 30-day general license allowing the delivery of Russian crude that was already at sea as of mid-March. This window, intended to stabilize global energy markets, expires on April 11. Indian refiners have already utilized similar exemptions to transact with previously blocked vessels.