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PXP Energy, a company that has interests in West Philippine Sea, says it will use the funds raised through this deal to finance oil exploration activities.
OIL EXPLORATION. Dennis Uy, a businessman from Davao City, and magnate Manuel Pangilinan enter into an oil prospecting agreement. Photo of Uy by LeAnne Jazul / Rappler, photo of Pangilinan by AFP
MANILA, Philippines – Businessman Dennis Uy, based in Davao, has bought shares in PXP Energy, a company of Manny Pangilinan, which holds exploration rights in gas in the sea from the Western Philippines (South China Sea).
In a disclosure to the Philippine Stock Exchange, PXP Energy announced its approval of the subscription of Dennison Holdings Corporation of Uy to 340 million common shares priced at 11.85 pesos.
The transaction gives Uy's holding company a total stake of 14.78% in PXP Energy.
PXP Energy has also approved the subscription of another company led by Pangilinan, Philex Mining Corporation, to 260 million common shares. The transaction increases Philex Mining's stake in PXP from 19.76% to 25.91%.
PXP Energy will collect around 7 billion pesetas on subscriptions.
"PXP intends to use the proceeds of its private placement with Dennison and Philex to fund its exploration activities and other petroleum assets in the Philippines and Peru, as well as to repay its cash and cash equivalents. Philex advances, "the statement said.
The agreement also states that Dennison will grant "preferential rights" to PXP Energy and will acquire up to 49% of the capital of the proposed joint venture between Phoenix Petroleum and China National Offshore Oil Corporation (CNOOC).
Uy Phoenix Petroleum was able to enter into an agreement with a CNOOC unit last June to develop a liquefied natural gas receiving terminal in the Philippines.
PXP Energy directly and indirectly owns oil and gas exploration and production assets in the Philippines, and indirectly, an exploration asset located off the coast of Peru.
The company had previously called for the lifting of the moratorium on exploration activities in the western Philippine Sea and even went on to claim that the initiative was "of national interest".
PXP Energy holds an approximate 79% interest in Forum Energy, a London Stock Exchange-listed company that holds a majority interest in the offshore exploration service contract 72 in the western Philippine Sea.
The Ministry of Energy suspended its activities in disputed waters in 2015 as the Philippines continued international arbitration.
China has claimed ownership of almost the entire South China Sea, so PXP Energy's exploration efforts have been stalled. – Rappler.com
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