Apex Mining Co. Inc. is looking to unload its stake in a long-stalled natural gas exploration project in the West Philippine Sea, potentially freeing the company from an investment that has remained idle for more than four years amid tensions with China.
In a disclosure to the Philippine Stock Exchange on Tuesday, the Razon-led Apex Mining said its wholly owned subsidiary, Monte Oro Resources & Energy Inc. (MOREI), received an offer from Prime Oil & Gas Inc. to acquire its 30-percent participating interest in Service Contract 72 (SC72), which covers the Sampaguita Gas Field.
The proposed sale would allow Apex Mining to exit a petroleum exploration investment whose development remains uncertain, although the transaction has yet to be finalized.
However, Apex Mining has not disclosed the proposed acquisition price, with the value of its stake still under assessment.
“MOREI has engaged the services of an accredited third party professional valuer to assist in the determination of the value of the 30 percent participating interest in SC72,” the company said.
The transaction remains subject to due diligence, a mutually acceptable definitive agreement and regulatory clearance.
“The Proposed Transaction will also be subject to the approval of the Department of Energy (DOE),” Apex Mining said.
Prime Oil & Gas is an indirect subsidiary of Prime Strategic Holdings Inc., which is also the parent company of Apex Mining.
The proposed sale would therefore transfer the exploration interest between companies under common ownership rather than bring in an outside investor.
SC72 covers approximately 8,800 square kilometers of petroleum exploration acreage, including the Sampaguita Gas Field in Recto Bank in the West Philippine Sea.
Forum Ltd. holds the remaining 70-percent participating interest and serves as operator of the service contract.
“Exploration work in SC72 was suspended in April 2022 following instructions from the DOE because of the geopolitical tension with China in the West Philippine Sea. A declaration of force majeure continues to-date,” the disclosure said.
The prolonged suspension has prevented further exploration of the gas field, leaving its commercial development and potential contribution to the country's energy supply uncertain.
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