MANILA, Philippines — Pangilinan-led PXP Energy Corp. hiked its stake in Canada-based FEC Resources Inc., strengthening its control over a West Philippine Sea petroleum service contract operator.
In a regulatory filing yesterday, PXP said it subscribed to an additional 131.56 million ordinary shares of FEC, effectively raising its stake to 81.25 percent from 78.39 percent.
The subscription was transacted via a conversion of an outstanding loan of $1.16 million – inclusive of accrued interest – into new shares of FEC.
FEC holds a 6.8-percent interest in Forum Energy Ltd. (FEL), the designated operator of Service Contract 72 Recto Bank.
After the transaction, PXP’s total economic interest in FEL now stands at 98.08 percent from 97.88 percent. Its stake in SC 72 likewise increased to 68.65 percent from 68.52 percent.
“The acquisition of additional shares in FEC did not result in a change in the board of FEC or FEL,” PXP said.
SC 72 is an 8,800-square-kilometer offshore petroleum license situated west of Palawan in the West Philippine Sea.
Exploration activities in the petroleum block remain suspended due to geopolitical tensions in the contested waters.
PXP earlier expressed readiness to resume activities in the West Philippine Sea once the Philippine government lifts the years-long moratorium.
Company officials said PXP continues to coordinate with the Energy department regarding the lifting of the ban imposed in 2014 by then president Benigno Aquino III.
Amid persistent challenges, the company has since shifted its focus to advancing service contracts in Cebu and northwest Palawan while exploring other opportunities beyond these areas.
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