Philippine power producer First Gen Corp. (FGEN.PH) said Wednesday it has bought out joint-venture partner BG Group PLC (BG.LN) from two domestic, natural-gas-fired power plants.

First Gen will pay BG $360 million in cash. In a separate disclosure in London, BG said it will use that for oil and gas production.

First Gen earlier this month raised PHP10 billion ($233 million) by issuing preferred shares to partly finance the long-planned acquisition of BG's 40% stake in the 1,000-megawatt Santa Rita plant and the 500-megawatt San Lorenzo plant, both located in Batangas, a province just south of Manila.

First Gen's purchase of BG's stake allows it to proceed building the 300-megawatt San Gabriel power plant, a project delayed by BG's decision to focus on more lucrative oil and gas production.

First Gen is a unit of conglomerate First Philippine Holdings Corp. (FPH.PH).

-By Cris Larano, Dow Jones Newswires; 632-848-5051; cris.larano@dowjones.com