Philex unit completes P2.1-B sale of Vietnam firm

Rappler.com
The sale generated P200 million profits, which the Philex group intends to use to 'fund exploration activities' and 'acquire new oil and gas exploration assets'

MANILA, Philippines – A unit of Philex Petroleum Corp. has completed the sale of all its stake in its Vietnam-based oil and gas exploration and production firm.

In a disclosure to the stock exchange on Wednesday, July 14, listed Philex Petroleum said its international oil exploration affiliate Pitkin Petroleum Plc has sold its interests in subsidiary Vietnam American Exploration Company LLC (Vamex) for P2.1 billion.

The transaction generated a P200 million gain for the group. “Pitkin intends to use the proceeds from this transaction together with its existing financial resources to fund exploration activities on its existing assets and to acquire new oil and gas exploration assets,” said Philex Petroleum president Carlo Pablo.

No additional transaction details were provided.

Vamex has a 55% stake in Block 07 & 08/97 that covers 4,915 square kilometers of sea on the southern margin of the Nam Con Son Basin. It is adjacent to the offshore area in Vietnam known to have prolific oil and gas discoveries.

Pitkin Petroleum is a UK-registered upstream oil and gas company with operations in the Philippines, Vietnam, Peru and the USA. It is a 50.28% owned subsidiary of Philex Petroleum which, in turn, is 64.7% owned by Philex Mining, the Philippines’ biggest gold producer.

“The company will continue to actively manage its portfolio of energy assets to access potential hydrocarbon resources, and to help mitigate the inherent risks and uncertainties of the upstream petroleum business,” the company added. – Rappler.com

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