Philippines oil and gas company PXP Energy Corp., a unit of Philex Mining Corp., plans to acquire up to a 49 percent interest in the planned liquefied natural gas (LNG) project of peer Phoenix Petroleum Philippines Inc. as part of the subscription agreement with investment firm Dennison Holdings Corp.
PXP Energy said that the parties signed the subscription agreement with Dennison buying 340 million common shares of PXP Energy at $0.22 per share, or for a total of 4.03 billion Philippine piso ($75.4 million).
Phoenix, an affiliate of Dennison, has teamed up with China National Offshore Oil Corp. (CNOOC) to put up the country’s first LNG hub. Dennison will now have a total ownership interest of 14.78 percent in PXP while Philex will increase its stake to 25.91 percent.
In addition, as a substantial consideration, Dennison shall cause Phoenix, subject to its board approval and consent of CNOOC, to grant certain preferential rights to the company to acquire up to 49 percent of the equity of Phoenix Petroleum and or its affiliates.