Phoenix Petroleum expands into bitumen production
Davao-based businessman Dennis Uy is going into bitumen production in line with expanding the product portfolio of Phoenix Petroleum Philippines Inc.
In a disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum said it received the go signal to execute a joint venture agreement (JVA) with TIPCO Asphalt Public Co. Ltd. and Carlito B. Castrillo of PhilAsphalt (Dev’t) Corp. for the purpose of operating, marketing and distribution of bitumen and bitumen-related products in the Philippines.
Bitumen is an oil residue used as a component for making asphalt.
“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. In this instance, bitumen is one of the by-products of crude oil refining. Effectively, Phoenix is expanding its portfolio of petroleum products,” the oil firm said.
The partners will form a JV company with a total authorized capital stock of P275 million 30 days after the JVA’s execution.
Phoenix Petroleum will own 40 percent of the company, while TIPCO Asphalt and PhilAsphalt will corner 40 percent and 20 percent, respectively.
Once the JV company is formed, the partners will proceed to secure a lease from Calaca Industrial and Seaport Part (formerly Phoenix Petroterminals & Industrial Park) for a parcel of land with access to its jetty and wharf facilities for the construction and establishment of a terminal.
It will also start obtaining necessary approvals, permits and licenses from government agencies and bodies.
TIPCO Asphalt is the leading manufacturer and distributor of asphalt products for repairing, maintenance and servicing and construction of road pavements, highways and airport runways in Thailand and the Asia-Pacific region.
Its asphalt products are also sold to importers and road contractors in Africa, Australia and North America.
Meanwhile, PhilAsphalt shall engage in the marketing, distribution and trading of all kinds of bitumen and bitumen-related products.
Through acquisitions, Phoenix Petroleum continues to create growth and opportunities in highly attractive industries and markets that are complementary to its core fuel business and are underpinned by strong macroeconomic fundamentals.
The oil firm now offers its own liquefied petroleum gas (LPG) after it acquired Petronas Energy Philippines Inc. (PEPI), now Phoenix LPG Philippines Inc. (PLPI), in August 2017.
It also acquired Philippine FamilyMart CVS Inc. from Ayala Land Inc. and SSI Group Inc.
Philippine FamilyMart, the official area franchisee of the FamilyMart brand of convenience stores in the Philippines, currently has a network of 67 company-owned and franchised stores across the country.