PHOENIX Petroleum Philippines Inc. is acquiring Petronas Energy Philippines Inc. (Pepi), a subsidiary of Petronas Dagangan Berhad (PDB) engaged in selling and marketing liquefied petroleum gas (LPG) and other petroleum products.
A memorandum of understanding was signed by the oil firm and PDB in relation to the planned 100-percent acquisition of Pepi and its affiliate Duta Inc. The acquisition will be subject to the approval of the Philippine Competition Commission.
The potential acquisition of the LPG business is consistent with Phoenix’s goal of becoming one of the leading oil and gas players in the Philippines.
“We are very excited about this asset not only because it represents a new product that Phoenix can offer, but also because we know it has been operated in line with the operating standard of Petronas, a Fortune 500 company. Pepi’s level of excellence, professionalism and adherence to the highest of global standards is impressive,” said Dennis Uy, president and CEO of Phoenix.
Pepi is engaged in the business of selling LPG in cylinders for household and commercial use, as well as LPG in bulk for industrial use and autogas, an environmentally friendly alternative fuel for vehicles.
With its foray into the LPG space, Phoenix aims to build significant presence in the nonfuel petroleum markets, which currently account for about 1 percent of the company’s business.
Pepi generates most of its sales in the Visayas and Mindanao. This investment plan will allow Phoenix to further grow this business in its home market, where there is room for profitable industry expansion and less competition.
“The company views the LPG business as a strong strategic fit as it broadens its product portfolio and petroleum presence with a particular emphasis in the Visayas and Mindanao,” the company said.
Phoenix Petroleum is the leading independent oil company in the Philippines, engaged in the trading and marketing of refined petroleum products and lubricants, operation of oil depots and storage facilities, hauling and into-plane services.