Monday, May 30, 2016
Total and Filoil Enter into Joint Venture
Total and Philippine oil company Filoil have agreed to create a joint venture for the fuel sales business in the Philippines. The combined business will grow Total’s network from 206 to 442 stations and its retail market share from 3 percent to 6 percent. The joint venture will also benefit from a strong supply infrastructure throughout the archipelago.
“The synergy from Total’s operational expertise and Filoil’s excellent nationwide logistics will propel our growth in the Philippine market,” explained Francois Dehodencq, Senior Vice President of Total Marketing & Services and head of Total’s downstream business in Asia-Pacific. “This partnership allows Total to continue its development in Asia-Pacific and brings to 1,700 the number of service stations we have in the region.”
One of the leading independent oil players in the Philippines, Filoil first emerged in the downstream oil industry in 2001 as a trader of quality petroleum products of Total Philippines and more importantly as a logistic service provider to some of the major oil companies and independents. Over the last decade, the company has established itself as one of the fastest-growing oil companies in the highly competitive Philippine petroleum industry and has since grown its network to over 236 retail stations and 9 depot terminals nationwide.
Total, on the other hand remains to be one of the largest major integrated oil and gas companies in the world, with activities in more than 150 countries. In the Philippines, Total has built a strong presence since it entered the market in 1997 and has been engaged in the importation, distribution and marketing of refined petroleum products – fuels, lubricants and special fluids. The company owns and operates two oil terminals, and a fast-growing network of over 200 service stations.
“This joint venture will allow us to provide quality fuels and services to more Filipinos. We see a huge potential in the Philippine market and we are keen to capture this growth” said Total Philippines Managing Director Dilip Vaswani. “Leveraging the logistics assets and local knowledge that Filoil brings to the partnership with the strength of the global brand and expertise of Total, creates a force for good that will allow us to serve more customers across the country,” added Raffy Villavicencio, CEO, Filoil Energy Company.
The partnership will create a marketing company and a logistics company and is subject to approval of government authorities.