ENEX Energy Corp., a wholly owned ACEN subsidiary, is pressing ahead with its offshore gas development plans while securing fresh shareholder backing for a capital restructuring, as it navigates delays and seeks a strategic partner for its key asset.

At its annual stockholders’ meeting on April 20, shareholders approved the conversion of receivables from ACEN Corporation into equity, authorizing the issuance of 75.06 million preferred shares at PHP 1.00 per share. 

The company said the conversion is intended “to strengthen the Corporation’s balance sheet by reducing liabilities and increasing equity,” as it positions itself to advance its upstream portfolio.

ENEX is centered on Service Contract 55 (SC55) offshore Palawan, which it considers a potential source of indigenous gas supply as the Philippines looks to bolster energy security and reduce reliance on imports.

“The geopolitical tensions in the Middle East have materially disrupted global energy markets, driving volatility in commodity prices and amplifying energy security concerns. These conditions have underscored the need to develop domestic sources to strengthen energy resilience,” said ENEX President and CEO John Eric T. Francia.

“At ENEX, we see transition assets as critical to enabling a credible and orderly energy transition. Our strategic asset – SC55 in Palawan – has the potential to strengthen domestic energy security while providing a bridge to a more low-carbon generation mix in line with the government’s long-term energy policy,” he added.

However, progress remains tied to resolving current constraints, including the need to bring in a capable development partner while the contract remains under force majeure.

“Despite the current backdrop, our focus remains on SC55, where we continue to work toward de-risking the project and securing a suitable development partner even as the force majeure status remains in effect,” Francia said.

He added that ENEX is prioritizing the asset over expanding into new upstream opportunities, citing capital intensity and long development timelines.

“Given the projected capital intensity, long lead time once drilling begins, and indeed today’s evolving market conditions, we believe concentrating our resources on the current service contract is the more prudent path at this time.”

ENEX said it continues to engage government and stakeholders on key issues affecting the contract, as it works to unlock what it described as a potentially significant domestic energy resource.

What do you think—can offshore gas still play a meaningful role in the Philippines’ energy transition, or will project delays limit its impact? Join the discussion.

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