PHOENIX INKS DEAL FOR ASPHALT PRODUCTS
PHOENIX Petroleum Philippines, Inc. announced that it had struck a deal to sell bitumen and bitumen-related products in the Philippines as part of a bid to expand its portfolio.
In a disclosure to the local bourse, Dennis Uy-led Phoenix Petroleum said on Tuesday that its board had approved the execution of a joint venture agreement (JVA) with Tipco Asphalt Public Co. Ltd and Carlito B. Castrillo of PhilAsphalt (Dev’t) Corp.
The joint venture company seeks to operate, market, and distribute bitumen and bitumenrelated products in the country. It will have an authorized capital stock of about P275 million.
Phoenix Petroleum and Tipco Asphalt will each have a 40 percent stake in the JV while Castrillo will hold 20 percent.
Phoenix Petroleum is engaged - leum products on a wholesale basis and in the operation of oil depots. It has a wide network of retail stations and commercial and industrial clients all over the country.
Tipco Asphalt is a manufacturer and distributor of asphalt products for the repair, maintenance and servicing, and construction of road pavements, highways and airport runways in Thailand and the Asia
Following the execution of the JVA, the parties involved shall cooperate to apply for the incorporation and registration of the JV company within 30 days. This includes the appointment of a treasurer-in-trust, as well as nomination of incorporators and initial
The parties will also contribute to the planned company in accordance with the schedule of share capital contribution.
After incorporation, the JV company will lease from Calaca Industrial and Seaport Part (formerly Phoenix Petroterminals & Industrial Park) a parcel of land with access to its jetty and wharf facilities for the construction and establishment of a terminal. The JV company will then work to obtain the necessary approvals, permits, and licenses from government agencies and bodies.
“Phoenix’s strategic focus will be on creating growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals,” Phoenix Petroleum said.
In this instance, bitumen is one of the by-products of crude oil
Bitumen is a dense, highly viscous, petroleum-based hydrocarbon that is found in deposits such as oil sands and pitch lakes or is obtained as a residue of the distillation of crude oil.