The joint venture of oil players Filoil Philippines Corp. and Total Philippines Corp. is transitioning into a “franchise set up” in the wake of the reports of the TotalEnergie’s exit from the Philippine retail and distribution market.
“Without breaching the confidentiality agreement executed by the concerned parties, BSC has been informed that the joint venture is transitioning into a franchise setup, with the FPC taking the lead in continuing the Total brand and business operations under Total Philippines Corp. [TPC] – TotalEnergies will remain the franchisor of the brand and business,” Basic Energy Corp. said in a disclosure to the stock exchange.
FPC and Total Philippines created a joint venture for the fuel sales business in the Philippines in 2016. Total Philippines decided to exit the joint venture.
Basic said it was assured that the transition into a franchisee setup would have no material effect or impact on its business and operations.
It said FPC is the primary transacting party with TotalEnergies, a separate entity from Filoil Energy Company Inc. (FEC) which is the company that it invested in.
Both FPC and FEC are separate corporate entities under the “Filoil group of companies,” it said.
TotalEnergies’ other activities such as the renewables and business and business process outsourcing operations is not affected by the transaction.
TotalEnergies has 400 remaining employees in the Philippines, and they expect the renewables and BPO to continue to grow.