Pryce Gases Inc., a unit of Pryce Corp. wants to acquire 10 percent participating interest in Otto Energy Philippines, Inc., operator of Service Contract 55 (SC55).
This is for the exploration, development, and exploitation of petroleum resources in the offshore area of Southern Palawan.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Pryce Corp. said it has already submitted a formal firm offer to acquire 10 percent from Otto Energy.
“The offer is essentially subject to the condition that PGI is to receive 20 percent of the Filipino Participation Incentive Allowance under the service contract and will be entitled to 10 percent of the cost recovery pool,” said Pryce Corp.
The offer, however, is as yet unaccepted and may still be subject to amendments and counterproposals.
“There is likewise no certainty or assurance that any agreement will be reached relative to PGI’s offer,” it added.
Pryce Gases, which is 98 percent owned by Pryce Corp., is engaged in the manufacture and distribution of industrial and medical gases and liquefied petroleum gas (LPG) under the trade name “PRYCEGAS.”
The Company operates in Mindanao and Visayas areas.
SC55 is a deep-water block in the middle of a proven regional oil and gas fairway that extends from the productive offshore Borneo region in the Southwest to the offshore Philippine production assets Northwest of Palawan.