Phoenix Petroleum Philippines Inc. said Friday it signed a three-year fuel supply agreement with two subsidiaries of Nickel Asia Corp., making it a reliable partner of the mining industry.
Phoenix said it signed agreements with Dinapigue Mining Corp. in Dinapigue, Isabela and Manicani Mining Corp. in Manicani Island in Guiwan, Eastern Samar.
It said NAC also awarded the supply requirement of its 11-megawatt diesel plant in Surigao City for one year.
NAC also awarded to Phoenix the diesel and gasoline requirements of the Taganito Mining Corp. in Claver, Surigao del Norte early this year.
“These new supply agreements show that we are a trusted and reliable partner in fulfilling NAC’s fuel requirements,” it said.
Phoenix last year implemented steps to restructure its debt. It agreed to sell and back some of its assets to BDO Unibank Inc. in October 2023 with proceeds estimated at P9 billion.
These assets involve its terminals, depots and retail stations.
Phoenix also divested its investments in PNX Petroleum Singapore Pte. Ltd (PNX SG) and planned to use the over P1-billion ($19.2 million) proceeds for working capital.
Phoenix also announced it temporarily halted its importation operations of diesel and gasoline in March 2023 due to price volatilities in the world oil market and finds it more favorable to buy domestic fuels than imported fuels.
“This way, it allows the company to manage its resources as well as reduce and manage risks due to inventory losses. Nonetheless, should trading conditions change, the company will evaluate its supply approach and strategy,” it said.