Prime Oil seeks 30 per cent interest in West Philippine Sea contract
The proposed acquisition from an Apex Mining subsidiary requires valuation, due diligence and Department of Energy approval.
Enrique Razon’s Prime Oil & Gas Inc. has offered to buy a 30 per cent participating interest in Service Contract 72 (SC 72), which covers petroleum exploration and development in the West Philippine Sea, according to a stock exchange disclosure by Apex Mining Co. Inc.
The interest is held by Monte Oro Resources & Energy Inc. (MOREI), a wholly owned Apex Mining subsidiary. Apex Mining said a valuation would determine the contract’s value and the consideration for the proposed acquisition. MOREI has engaged an accredited independent professional valuer to assess its interest.
Any acquisition would also depend on due diligence findings, a definitive agreement acceptable to both sides and approval from the Department of Energy, Apex Mining said. Prime Strategic Holdings Inc., which is led by Razon, is Apex Mining’s parent and indirectly controls Prime Oil.
PXP Energy Corp., Manuel V. Pangilinan’s upstream petroleum company, indirectly operates SC 72 through Forum (GSEC 101) Ltd. Forum holds the remaining 70 per cent interest. The contract covers 8,800 square kilometres and includes the Sampaguita Gas Field in Recto Bank.
The area remains under force majeure amid escalating geopolitical tensions with China. The Department of Energy has kept exploration activities there suspended since April 2022.
