Razon Group consolidating energy assets

Prime oil seeks 30% stake in APEX unit

MANILA, Philippines — Prime Oil & Gas Inc. of businessman Enrique Razon is looking to acquire a 30-percent stake in a natural gas operation in the West Philippine Sea, as the tycoon seeks to consolidate his group’s energy portfolio.

In a disclosure to the stock exchange, Apex Mining Co. Inc. said its wholly owned subsidiary, Monte Oro Resources & Energy Inc. (MOREI), has received an offer from Prime Oil to acquire its 30 percent participating interest in Service Contract 72 (SC 72).

The company added that the proposed deal remains subject to a valuation exercise that will determine the value of SC 72 and the consideration of the proposed transaction.

It noted that the results of due diligence as well as a mutually acceptable definitive agreement will also be considered before moving forward with the potential acquisition.

“The proposed transaction will also be subject to the approval of the Department of Energy (DOE),” Apex Mining said.

It noted that MOREI has also hired an accredited third-party professional valuer to assist in determining the value of its 30 percent participating interest in SC 72.

Razon-led Prime Strategic Holdings Inc., the parent company of Apex Mining, is also Prime Oil’s indirect parent company.

SC 72 is operated indirectly by Manuel V. Pangilinan’s upstream oil and gas company PXP Energy Corp. through Forum (GSEC 101) Ltd., which owns 70 percent of the service contract.

It currently covers the exploration, development and exploitation of petroleum resources within an 8,800-square-kilometer area in the West Philippine Sea.

The Sampaguita Gas Field in Recto Bank, also included in SC 72, is said to hold about 2.6 to 5.4 trillion cubic feet of natural gas and petroleum resources.

The area remains under force majeure due to the escalating geopolitical tensions with China in the West Philippine Sea.

Exploration work in the area has remained suspended by the DOE since April 2022.