French oil company Total and Filoil Energy Co., one of the leading independent oil players in the Philippines, have agreed to create a joint venture for fuel sales in the Philippines. The partnership will create a marketing company and a logistics company, subject to approval by the Philippine government.
“This joint venture will allow us to provide quality fuels and services to more Filipinos,” said Dilip Vaswani, managing director of Total Philippines. “We see a huge potential in the Philippine market, and we are keen to capture this growth.”
Total entered the Philippine retail market in 1997 and has been engaged in the importation, distribution and marketing of refined petroleum products, including fuels, lubricants and special fluids, since then. Total owns and operates two oil terminals in the Philippines, in addition to 206 service stations. The combined business will more than double Total’s service station network to 442, thus boosting its retail market share from 3% to 6%.
“The synergy from Total’s operational expertise and Filoil’s excellent nationwide logistics will propel our growth in the Philippine market,” said Francois Dehodencq, senior vice president of Total Marketing and Services and head of Total’s downstream business in Asia Pacific based in Singapore.
Dehodencq said the partnership with Filoil will bring the total number of Total service stations in the Asia-Pacific region to 1,700.
Filoil began in 2001 as a trader of petroleum products from Total Philippines, and more important, as a logistic-service provider to some of the major oil companies and independents. Over the last decade, Filoil has established itself as one of the fastest growing oil companies in the country, growing its oil retail network to more than 236 service stations and nine depot terminals.
“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,” said Raffy Villavicencio, CEO of Filoil Energy Co.