Basic Energy, Thai firm in RE venture
Publicly listed Basic Energy Corporation (BEC) has firmed up a partnership deal with Thai firm Vintage Engineering Public Company Ltd. (VTE) for renewable energy (RE) ventures.
The Filipino firm has agreed to issue to VTE “an aggregate of 435,658,699 shares out of the unissued capital stock of the company in tranches.”
In particular, the two firms agreed “for a strategic partnership to pursue the exploration, development and production of renewable energy resources.”
The Thai firm partner is also given “the right to invest in the Mabini geothermal project and other projects of BEC.”
VTE, it was added, “may increase its holdings if BEC shares in the future, both subject to terms and conditions which shall be mutually agreed upon by the parties in the future.”
It was further stipulated that “the above transactions are subject to compliance of the conditions precedent, representations and warranties and covenants.”
For the Mabini geothermal venture, Basic Energy just reported in January that it already targeted drilling depth of 1,500 meters – and will move next to ‘testing’ of the drilled wells.
The drilling of the exploratory well that was spudded June last year, it has been noted, shall “test a potential geothermal resource previously identified by geophysical and geological techniques.”
As set on the project’s initial blueprint, the prospective Mabini geothermal power plant could be for 20 to 60 megawatts of capacity – that could help boost supply shared by Luzon and Visayas grids, upon development.
In a farm-in deal previously approved by the Department of Energy, Phinma Energy holds “25 percent undivided participating interest in the rights, interests, privileges, duties and obligations” in the project.
For the Del Rosario-led Phinma Energy, this is so far the second successful geothermal energy venture that it has been involved in within Luzon grid.
The first one had been its project with PetroEnergy Resources Corporation in the 20MW Maibarara geothermal facility in Sto. Tomas, Batangas.