PXP Energy raises stake in WPS oil contract
PXP Energy Corp. has hiked its stake in Canada-based FEC Resources Inc. (FEC), strengthening its position in the country’s upstream oil and gas sector.
In a disclosure to the local bourse Friday, the Manuel V. Pangilinan-led company said it has increased its direct shareholding in FEC from 78.39 percent to 81.25 percent through a debt-to-equity swap.
The company has secured 131.56 million new shares in FEC by converting an outstanding loan of $1.01 million and interest of $146,604.
Following this transaction, PXP’s total economic interest in Forum Energy Ltd (FEL) now stands at 98.08 percent from 97.88 percent. Its control in Service Contract (SC) 72 also went up to 68.65 percent from 68.52 percent.
FEC, an investing holding firm, has a 6.8 percent interest in FEL. FEL controls a 70-percent stake in SC 72 in the West Philippine Sea (WPS).
SC 72 or the Recto Bank is an 8,800-square-kilometer offshore petroleum license off the west of Palawan Island in the disputed WPS.
It is also situated close to the Malampaya gas field. However, due to maritime disputes between the Philippines and China, the Department of Energy had ordered the suspension of oil exploration activities in the area.
“Despite the ongoing force majeure… PXP and FEL remain committed to the long-term potential of these blocks, maintain a prudent approach in managing existing commitments, and continue to monitor developments across its portfolio of SCs,” it said in an earlier statement.
PXP Energy has been reiterating its openness to explore other oil and gas opportunities across the country.
