US to create a new base in Philippines to maintain unmanned naval vessels observing Chinese forces.

On May 30, 2025, a notice published by the U.S. Department of Defense detailed plans to build a new maintenance and repair facility at Naval Detachment Oyster Bay, Palawan, which will support both manned and unmanned surface vessels used by the Philippines to observe Chinese vessels. The project aims to construct infrastructure that can maintain 11.6-meter (38-foot) vessels, equipped with electrical, air conditioning, and support systems suitable for these platforms.
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The upgraded facility will also support unmanned surface vessels that the U.S. has already delivered to the Philippines, including one Devil Ray T-38 and four Mantas T-12s. (Picture source: US DoD)

The facility is expected to include a portable 5-ton gantry crane capable of lifting 7.3-meter (24-foot) boats, two multipurpose rooms for storage or meetings, and repairs to the current steep launch ramp. The Pentagon expects to issue a contract within the next two months. The project’s total value is estimated between $1 million and $5 million and will also address existing infrastructure challenges at the base. Naval Detachment Oyster Bay is strategically located on the western coast of Palawan and currently supports operations of Philippine Navy Cyclone-class patrol ships, gunboats, fast attack boats, and Philippine Marine units. It provides a staging point closer to contested maritime features than the province’s eastern ports and serves as a key resupply and surveillance hub for Philippine operations in the South China Sea, including Second Thomas Shoal.

In 2020, Manila began construction of a pier to accommodate landing vessels. Satellite imagery from 2022 to 2024 shows the presence of assault boats and ammunition bunkers. Two Cyclone-class ships, BRP Valentin Diaz (PS 177) and BRP Ladislao Diwa (PS 178), previously transferred by the U.S. in 2023, are stationed at the base. In November 2024, Valentin Diaz participated in joint patrols with U.S., Japanese, and Australian warships. These assets are deployed amid ongoing incidents with Chinese maritime forces, which in 2023 and 2024 included water cannon attacks, rammings, and incidents leading to damage of navigational systems and engine failures on Philippine vessels.

The upgraded facility will also support unmanned surface vessels that the U.S. has already delivered to the Philippines, including one Devil Ray T-38 and four Mantas T-12s, which were deployed to enhance maritime domain awareness and ISR capabilities. Philippine forces currently operate these drones from Oyster Bay and Subic, with technical assistance from a forward-deployed U.S. military unit, Task Force Ayungin. The unit provides training support and is named after Second Thomas Shoal, where the BRP Sierra Madre is stationed. According to a demonstration observed by Defense Secretary Lloyd Austin at Palawan’s Western Command headquarters in November 2024, USVs operated by the Philippine Navy are equipped with autonomous navigation, ISR payloads, and communication systems with over-the-horizon and line-of-sight capabilities. The USVs use Starlink terminals provided by SpaceX for real-time data transfer and remote operation. One T-12 vessel was confirmed to be operating in Oyster Bay during the visit, while the T-38 was controlled from Subic.

The Philippine Navy formally confirmed the existence of a USV unit in 2024. Vice Admiral Toribio Adaci stated that the primary role of the new unit is to improve ISR capabilities and maritime domain awareness by integrating unmanned systems with existing naval platforms. The USV unit, based in Subic and first revealed during the Asia Defense and Security Exhibition and the Asymmetric Warfare Symposium, operates small drones with limited disclosed specifications. Media appearances have shown its emblem, and its drones were seen displayed alongside Navy personnel. Adaci also mentioned plans to acquire maritime patrol aircraft and enhance anti-submarine capabilities under the Horizon 3 modernization phase. These include three fixed-wing aircraft planned for delivery between 2027 and 2033. Additionally, the Navy intends to improve littoral monitoring stations, including one at BRP Sierra Madre, equipped with radar and cameras. Defense companies such as South Korea’s Hanwha Ocean promoted systems like Sea GHOST at ADAS, indicating interest in future procurement partnerships.

The Oyster Bay facility is part of a broader pattern of U.S.-funded infrastructure projects outside the nine Enhanced Defense Cooperation Agreement (EDCA) sites. While most previous projects were limited to EDCA locations, the Oyster Bay upgrade and others, such as the planned logistics storage facility near Subic Bay and Clark Economic Freeport, reflect efforts to strengthen operational infrastructure nearer to flashpoints. The planned warehouse for Subic, expected by 2026, will span up to 33,000 square meters and support long-term storage and maintenance of vehicles, electronics, and communications equipment. Unlike the earlier 5,300-square-meter facility at the Naval Support Depot, the new site will host 69 to 100 personnel and include modular armory infrastructure. These projects are seen as responses to logistical and strategic needs created by decades of minimal infrastructure since the U.S. military withdrew from Philippine bases in the early 1990s.

The 2025 Joint Vision Statement on U.S.-Philippine Defense Industrial Cooperation identified unmanned systems, ship maintenance, and logistics as priority areas for collaboration. These goals are meant to align with the Philippines' Self-Reliant Defense Posture (SRDP) Revitalization Act. The statement outlines intentions to reduce regulatory barriers, incentivize participation, and explore joint production and maintenance opportunities. The Maritime Security Consortium, launched in November 2024 by the Department of Defense, supports this approach with up to $95 million annually in public-private funding for unmanned systems in Southeast Asia. This initiative is managed in coordination with the Defense Innovation Unit, the Defense Security Cooperation Agency, and U.S. Indo-Pacific Command. The Consortium uses joint exercises like Balikatan to demonstrate and deliver systems to partner countries. Secretary Austin stated in 2024 that the Philippines would likely receive more USVs through these channels, with particular focus on ISR and asymmetric capabilities, including cyber resilience and protected command infrastructure. The new Oyster Bay facility could therefore be seen as a signal of Manila and Washington’s intent to maintain access, deterrence, and sovereignty in the West Philippine Sea.

This initiative comes amid a backdrop of increasingly hostile encounters with Chinese forces in the South China Sea, as incidents throughout 2023 and 2024 involved repeated confrontations near Scarborough Shoal, Second Thomas Shoal, and Sabina Shoal. These included water cannon attacks, collisions, acoustic device usage, and boarding actions. During one incident in June 2024, a Philippine Navy SEAL lost a thumb while resisting a Chinese boarding operation at Second Thomas Shoal. Another encounter at Sabina Shoal led to significant damage to the BRP Teresa Magbanua and eventual withdrawal due to supply shortages. Chinese claims of illegal construction and reclamation activities by the Philippines were countered by academic research, which found no substantial evidence of reclamation at Sabina Shoal. Meanwhile, Filipino officials reported increasing aggression and disinformation efforts by China. Amid these developments, joint patrols with Japan, the U.S., Australia, and Canada have increased, with additional interest from France and India. The U.S. reiterated that the 1951 Mutual Defense Treaty covers attacks on Philippine public vessels in the South China Sea. Additionally, these incidents prompted President Ferdinand Marcos Jr. to declare in 2024 that any Filipino casualty from such acts could cross a red line and be seen as an act of war.