Listed power project developer, Basic Energy Corp. signed an agreement with Thailand-based listed firm, Vintage Engineering Public Co. Ltd. (VTE) for a strategic partnership to pursue the exploration, development, and production of renewable energy resources both local and abroad.

Under the agreement, Basic Energy and VTE shall, after due diligence, execute definitive agreements to cover VTE’s subscription of 9 percent of the outstanding capital stock of Basic Energy. The deal will also give VTE the right to invest in the projects of Basic Energy but are subject to conditions and terms that are to be mutually agreed and determined in the future.

VTE’s 9 percent equity investment covers 435,658,699 shares of Basic Energy from its unissued capital stock at a total subscription price of P139,410,783.68, divided into two tranches, with the first tranche payable on or before Dec. 31, 2016 and the second tranche payable on or before March 31, 2017.

Earlier, Basic Energy expressed interest to develop three solar power projects in the country composed of the 27 megawatts (MW) Bolinao and 15 MW San Fabian both located in Pangasinan alongside the 14 MW Labason in Zamboanga del Norte.

Aside from the solar projects, other developments where Basic Energy is involved in include geothermal projects in East Mankayan, Benguet; Mariveles, Bataan; Iriga, Camarines Sur as well as the 3,841 hectares, Mabini geothermal project in Calumpang, Batangas expected to yield capacity between 20 MW and 60 MW that is in the most advanced stage.

The company is also engaged in oil and gas exploration through subsidiaries like Basic Diversified Industrial Holdings Inc. and iBasic Inc. It also owns 72.58 percent of Southwest Resources Inc., another oil exploration company.

VTE is an engineering, procurement and construction contractor working on various energy projects in Japan, Myanmar, Indonesia and the Philippines.

Source: http://www.malaya.com.ph/business-news/business/basic-thai-firm-tie-re