FILOIL

FILOIL EXPANSION PROGRAM

FOR THE PROVINCE OF PALAWAN
2006

Prepared By: Jeremy Harry Amar 1

Goals

To come up with a business plan that

would allow FILOIL to penetrate the
existing petroleum distribution market in
the province of Palawan.
To set-up a viable supply and distribution
channel that would sustain FILOILs
petroleum distribution efforts in the
province.

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Description
The Plan involves setting-up FOUR (4)
Supply Depots (with 300 kl storage
capacity) and at least TWENTY EIGHT
(28) PORTAGAS Stations strategically
dispersed within the province to ensure
FILOIL competitiveness in the market.

FOR MORE INFO...

Complete Profile of the PROVINCE OF PALAWAN

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WHAT IS A PORTAGAS STATION?

The FILOIL PORTAGAS Station is a fully

transportable, single or multi-component
PORTABLE GASOLINE STATION designed for
easy installation. It is made of 100% fabricated
steel materials welded and bolted together,
complete with a cashiers office, a service
platform with digital fuel dispensing pump
equipment. The PORTAGAS Station comes in
three (3) designs that can be adopted with the
area. Its steel canopy is conveniently foldable and
detachable for transporting purposes. The
PORTAGAS over-all design features its significant
economy, not only in its construction/ installation
phase, but more so in its operational stage.
However, the materials and dimensions of the
PORTAGAS Station fully complies with the
Department of Energy specifications and
standards.

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The Competitive Scene

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Competitive Analysis
The Palawan Petroleum Market is dominated by the Oil
Majors: PETRON, SHELL, and CALTEX. There are no
Independent or Small Players in the province competing
with the Oil Majors. Although, there are small Takal
Operators that buy their fuel products from the Oil
Majors in their small time retail operations

PETRON
Operates an all-products depot, with an LPG refilling plant
and lubricants warehouse in Puerto Princesa City
Is considered a major force in the retail and wholesale fuel
distribution industry, with at least one (1) gasoline retail
station operating in almost all towns of the province
Has an established number of dealers and distributors

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Competitive Analysis
SHELL
Have product borrowing arrangement with
PETRON Depot in Puerto Princesa City for its
fuel withdrawals.
Is also considered a major force in the retail
and wholesale fuel distribution industry in
Palawan, with at least one (1) gasoline retail
station operating in almost all towns of the
province
Has an established number of dealers and
distributors also.

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Competitive Analysis
CALTEX
Also has product borrowing arrangement
with PETRON Depot in Puerto Princesa City
for its fuel withdrawals.
Through its appointed Distributor, Mr. William
Tan, is also a major force to contend with in
the retail and wholesale fuel distribution
industry in Palawan.
Has an established number of dealers and
distributors in the province.

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 Competitive Analysis

PETRON SHELL CALTEX FILOIL

SUPPLY Has Own All- With Supply With Supply With OWN Supply
Products Depot in Arrangement with Arrangement Depots ( 300 KL
ADVANTAGE Puerto Princesa Petron with Petron capacity ) to be set-
City up in four strategic
areas
LOGISTICAL With Fleet of With Fleet of With Fleet of With ready Fleet of
Haulers Haulers Haulers Haulers
ADVANTAGE
RETAIL Has a retail station Has retail station Has retail Will still set up retail
in almost every in almost every station in stations through
MARKET town town almost every Business Partners
PRESENCE town
BRAND Nationwide Nationwide Nationwide Via Market Niche
Coverage Coverage Coverage strategy to attain
ACCEPTANCE province wide
coverage

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The Market Strategy

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Market Strategy
The Market strategy will involve the following course of action
FILOIL will divide the Palawan market into FOUR
(4) MARKET TERRITORIES:
UPPER NORTH will include the municipalities
of Busuanga, Coron, Culion, Cuyo, Linapacan,
Agutaya, Magsaysay
NORTH will be El Nido, Taytay, San Vicente,
Roxas, Dumararan, and Araceli
CENTRAL will be Puerto Princesa City,
Aborlan, Kalayaan, and Cagayancillo
SOUTH will be Espanola, Narra, Quezon, Rizal,
Brookes Point, Balabac, and Bataraza

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Market Strategy
The Market strategy will involve the following course of action
FILOIL to set-up at least ONE (1) PORTAGAS Station per Town:
Upper North: 7 PORTAGAS Stations
North: 6 PORTAGAS Stations
Central: 7 PORTAGAS Stations
South: 8 PORTAGAS Stations
28 PORTAGAS Stations
FILOIL to strategically locate and set-up a SUPPLY DEPOT within the
FOUR (4) MARKET TERRITORIES (with a storage capacity of 300 kl per
Depot)
Upper North: Coron town
North: Roxas town
Central: Puerto Princesa City
South: Narra town

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Market Territory PROFILE
FILOIL Expansion Program for Palawan Province

LEGEND:

UPPER NORTH TERRITORY:

Busuanga, Coron, Culion, Cuyo, Linapacan,
Agutaya, Magsaysay

NORTH TERRITORY:
El Nido, Dumaran, Roxas, Taytay, San
Vicente, Araceli

CENTRAL TERRITORY:
Puerto Princesa City, Kalayaan,
Aborlan, Cagayancillo

SUPPLY DEPOT FACILITIES

SOUTH TERRITORY: (Coron, Roxas, Puerto Princesa
City, Narra)
Espanola, Narra, Brookes Point,
Rizal, Quezon, Bataraza, Balabac

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Market Strategy
FILOIL to SELECT and APPOINT FOUR (4) BUSINESS
PARTNERS who will each manage and operate an
assigned Market Territory. Scope of responsibilities
include the following:
Operate and Manage the Supply Depot
Operate their own PORTAGAS STATION
Recruit and Appoint PORTAGAS STATION
OPERATORS in each town within the assigned
market territory
Supervise and Assist the PORTAGAS STATION
OPERATORS in their retail operations

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Market Strategy
FILOILs FOUR (4) BUSINESS PARTNERS will
focus on the PORTAGAS STATION RETAIL
OPERATIONS AND SUPPLY DEPOT
OPERATIONS ONLY.

FILOIL to Solely HANDLE the WHOLESALE,

COMMERCIAL & INDUSTRIAL FUEL SALES
OPERATIONS through its designated Palawan
Business Representative.

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Market Strategy Overview

FILOIL

PALAWAN BUSINESS
BUSINESS PARTNER REPRESENTATIVE

RETAIL MARKET WHOLESALE, COMMERCIAL,

INDUSTRIAL MARKET

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Market Strategy Overview

RETAIL MARKET WHOLESALE, COMMERCIAL,

INDUSTRIAL MARKET
Tricycle
Wholesalers/Traders
Multicabs & Jeepneys
Mining Companies
Trucks
Shipping Companies
Buses
PALECO & NAPOCOR
Motorcycle
Multinational/ Big Companies
Cars & SUVs
with Distribution (Warehouse)
Small & Medium & motorpool facilities
Marine Transport
Units

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Project Viability

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Project Viability
Capital Investment for SUPPLY DEPOT
Land Development & Construction Cost: Php 10 M
(including piping, lighting & electrical, and concreting & other
structures)
Storage Tanks (30,000 Liters capacity x 10): Php 5 M
(Fabrication Cost/Tank: Php 500,000 x 10 units)

ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:

Php 15M x 4 = Php 60 M
Land devt & constn cost Php 40M
Storage TanK Fabrication Php 20M

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Project Viability
Capital Investment for PORTAGAS STATIONS
Complete set-up including structures, pavement, pump and tanks,
pipings, signages, and lightings: Php 5 M

ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS

STATIONS: Php 5M x 28 units = PHP 140 M

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Project Viability

ESTD TOTAL COST FOR FOUR (4) SUPPLY

DEPOTS: Php 15M x 4 = PHP 60 M

ESTD TOTAL COST FOR TWENTY EIGHT (28)

PORTAGAS STATIONS: Php 5M x 28 units
= PHP 140 M

TOTAL INVESTMENT COST = PHP 200 MILLION

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Projected Volume
ESTD TOTAL VOLUME FOR TWENTY EIGHT (28)
PORTAGAS STATIONS:
Average Daily Volume: 3,500 Liters per PORTAGAS STATION
Average Monthly Volume: 105,000 Liters per PORTAGAS STATION
Estd Total Volume per Month for 28 PORTAGAS STATIONS:
28 X 105,000 Liters = 2,940,000 Liters per Month

ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL

SALES: 1,000,000 Liters per Month

ESTD COMBINED VOLUME PER MONTH:

3,940,000 Liters per Month
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Resources
FILOIL has a dedicated Self propelled Motorized
Fuel Barge with a storage capacity of 1,000,000
liters per voyage.
FILOIL has a team of personnel that would handle
the entire business operations.
FILOIL has a standing Supply Arrangement with
TOTAL PHILS. that may be explored to sustain
the project.
FILOIL was already able to identify and appoint
the FOUR (4) Business Partners for Palawan,
although contract finalization is still up for the
three (3) Business Partners.

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Schedule
Construction & Operational schedule milestones
for Supply Depot Facilities

Central Depot Constn Central Depot Operational phase

South Depot Constn South Depot Operational phase
North Depot Constn North Depot Operational phase
Upper North Depot Constn Upper North Depot Operational phase

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

2013

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Current Status
High-level overview of progress against schedule
Central Depot already in permitting and documentation stage.
The site is ready for construction
South Depot is finalizing its contract with Business Partner.
The site is ready and identified.
North Depot is identified and contract is still up for finalizing
with Business Partner

Overview of PORTAGAS STATION progress

We have one (1) PORTAGAS Station already in its operational phase,
located at North Road, Tiniguiban, Puerto Princesa City. It is situated on
the Central Depot site. Construction of ONE (1) PORTAGAS Station each
for the South and North Territory will commence at the same time the
South and North Depot Facilities are begun.

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