(The Philippine Star) | Updated December 15, 2016 - 12:00am
MANILA, Philippines – Phoenix Petroleum Philippines Inc. is exploring a possible team up with global oil trading company Noble Clean Fuels Limited (NCFL) for the importation of petroleum products.
In a disclosure to the Philippine Stock Exchange yesterday, the company said it signed a non-binding memorandum of understanding (MOU) with NCFL for a potential joint venture arrangement.
For a period of five years, both firms will look at strategic investments in offshore supply of petroleum products and operation of import terminals within the country.
“The MOU between the two companies shall mull over and deepen a possible joint venture via strategic co-investments in brownfield assets of the company and greenfield developments which includes the operations of import terminals in various locations in the country,” Phoenix Petroleum said.
The MOU was signed by Phoenix Petroleum president and CEO Dennis Uy and NCFL Global CEO William James Randall.
NCFL is a London-based global oil trading company engaged in the business of offshore supply, export and import of petroleum products.
It is part of Noble Group Ltd., a physical commodities trader listed in the Singapore Exchange Ltd.
Meanwhile, Phoenix Petroleum is engaged in the business of trading refined petroleum products and lubricants, operation of oil depots and storage facilities, shipping and logistics, and allied services.
With a total of 495 stations as of end-September, the company continues to expand its logistics, storage, and infrastructure to support both its retail network expansion and its commercial and industrial clients.
Earlier this year, Phoenix Petroleum announced plans to divest from Chelsea Shipping Corp. (CSC) and Phoenix Petroterminals and Industrial Park Corp. (PPIPC) as it decided to focus on its core business of petroleum distribution.
The shipping and industrial park businesses will be sold to the Udenna Group, the effective parent and majority stockholder of the company, estimated to cost between P3 billion to P3.5 billion.
Phoenix Petroleum said the sale will significantly allow it to allocate all of its resources to fuel its aggressive growth in its core business and the distribution of petroleum products nationwide.