Uy-led Phoenix Petroleum Philippines Inc. has sealed a strategic partnership with state-run Indonesian firm PT Pertamina, for fuel trading which will be channeled through the latter’s Singapore-based subsidiary.
The Filipino listed firm disclosed to the Philippine Stock Exchange (PSE) that its board of directors “approved and authorized the company to enter into a strategic partnership with Pertamina International Marketing and Distribution Pte. Ltd.”
It added that the business tie-up covers “supply and other trading activities in Indonesia and the Philippines.”
Atty Raymond Zorrilla, senior vice president for external affairs, business development and security of Phoenix Petroleum, said the partnership entails supply sourcing or fuel procurement of the Filipino firm from its Indonesian counterpart. There’s no volume provided yet as to the scale of off-take agreed upon by the parties.
Indonesia is already the third country in the Southeast Asian region, which the Uy-led company, had cemented its tie-up with. It previously inked deal with Brunei firm Hengyi Industries for liquefied petroleum gas (LPG) sourcing; and it likewise set up business base in Vietnam for LPG venture.
Beyond these offshore markets, Phoenix Petroleum previously laid down that it was also setting its sights on Australia, Myanmar and Thailand for further business expansion in the energy sector.
The company is mainly using its Singapore subsidiary PNX Energy International Holdings Pte. Ltd. (PEIH) as corporate vehicle in scouting for investment prospects – including the supply sourcing and trading arrangements it had closed with foreign partners.
Phoenix Petroleum’s office in Singapore set up three subsidiaries as of last year – namely
PNX SG, PNX Energy and PNX Vietnam.
For that particular energy investment subsidiary, the initial capitalization earmarked by parent firm Phoenix Petroleum was US$10,000 – mainly intended to bankroll the commencement of its operations across targeted offshore markets.
PEIH had been the second international investment arm that the Uy-led company has incorporated in Singapore – the first one was PNX Petroleum Singapore Pte Ltd. in October 2017, and that has been serving as its regional trading arm for procurement and sale of oil products.
Through that oil trading subsidiary, Phoenix Petroleum noted that it has been gaining purchasing leverage; as that reinforces its capacity to buy directly from various refineries in the region.
On further plans of robust expansion, Phoenix Petroleum always indicated that regional markets in Asia
will be in its blueprint; especially so since its business foothold in the Philippines had already been spread across energy sub-segments; while affiliate firm under Udenna Corporation is also into various industries from telecommunications to real property development, casino, education and food, among others.