Businessman Enrique Razon’s energy group is moving to consolidate its interests in a major offshore natural gas exploration area in the West Philippine Sea, as Prime Oil & Gas Inc. seeks to acquire a 30% participating interest in Service Contract 72 (SC 72).

The proposed transaction involves Monte Oro Resources & Energy Inc. (MOREI), a wholly owned subsidiary of publicly listed Apex Mining Co. Inc. Apex Mining disclosed that MOREI had received an offer from Prime Oil & Gas for its existing interest in the petroleum exploration contract.

The potential acquisition would transfer the stake between companies linked to the same parent group, Prime Strategic Holdings Inc., which is controlled by Razon. The move could bring the group’s energy interests under a more centralised structure, although the final terms and completion of the transaction have not yet been confirmed.

Service Contract 72 covers approximately 8,800 square kilometres in the West Philippine Sea, an area designated for the exploration, development and exploitation of petroleum resources.

The contract includes the Sampaguita gas field in Recto Bank, also known internationally as Reed Bank. The field has been associated with estimated natural gas resources of approximately 2.6 trillion to 5.4 trillion cubic feet, making it a potentially significant asset for the Philippines’ domestic energy supply.

Forum (GSEC 101) Ltd., linked to upstream energy company PXP Energy Corp., holds the remaining 70% participating interest and operates the service contract.

The project’s long-term significance stems from the Philippines’ need to secure reliable domestic energy sources. Developing indigenous natural gas resources could potentially help reduce reliance on imported fuel, although commercial development would depend on further exploration, investment, infrastructure and regulatory approvals.

The proposed transaction would shift MOREI’s 30% participating interest to Prime Oil & Gas, another company within the broader Razon business group.

Such an internal restructuring can allow a corporate group to align assets with a business unit more directly focused on oil and gas exploration and production. It may also help clarify ownership structures and investment responsibilities across a diversified portfolio.

However, the companies have not announced a final purchase price or confirmed that the transaction will be completed. MOREI has engaged an accredited independent professional valuer to assess the value of its stake.

The proposed deal remains subject to the valuation exercise, due diligence, a mutually acceptable definitive agreement and approval from the Philippine Department of Energy (DOE). Until those conditions are met, the offer should not be treated as a completed acquisition.