MANILA -- Phoenix Petroleum said Friday it secured board approval to form a joint venture with China National Offshore Oil Corp for liquefied natural gas projects, with an initial investment of P250 million.
It will mark the second venture between companies controlled by tycoon Dennis Uy and a state-owned Chinese enterprise. Uy's Udenna Corp and Chelsea Logistics earlier partnered with China Telecom to challenge PLDT Inc and Globe Telecom.
Under the joint venture with CNOOC, Phoenix Petroleum told the stock exchange that it would "establish and operate various LNG-related trade and services" under the LNG Integrated Hub Project.
A wholly-owned subsidiary of Phoenix will be formed to manage the fuel company's LNG interest in the integrated hub, Phoenix told the stock exchange.
Uy's Dennison Holdings earlier sought to acquire 14.78 percent of PXP Energy, which is seeking to restart talks with CNOOC for possible joint exploration in the South China Sea.
The chairman of PXP Energy, Manuel Pangilinan, said in October that he was interested in participating in Uy's LNG venture with CNOOC.
During Chinese President Xi Jinping's state visit to the Philippines last November, Manila and Beijing signed a memorandum of understanding on the South China Sea, which Foreign Affairs Secretary Teodoro Locsin Jr. described as an "agreement to agree."
Philippines-China ties were reset when President Rodrigo Duterte assumed office in 2016, leading to more aid and investments.
Duterte's predecessor, former President Benigno "Noynoy" Aquino questioned China's vast claims in the South China Sea before a UN-backed tribunal.
Duterte refused to flaunt the Philippines' legal victory before the Permanent Court of Arbitration, which was handed down shortly after Aquino stepped down.