Total won’t hike stake in Eastern

Total Petroleum Philippines Corp. (TPPC), a subsidiary of French power firm Totalfinaelf, has no plans to increase its stake in Eastern Petroleum Corp. (EPC) despite its aggressive moves to expand its operations in the Philippines.

"We do not intend to jack up our share in Eastern Petroleum," TPPC president and managing director Jeff Attwood said in reacting to reports that his company is intensifying efforts to grow its business in the country.

TPPC, one of the biggest new players in the downstream oil industry, owns about 15 percent in EPC, another new entrant in the industry owned by the Martinez family.

Both TPPC and EPC started doing business in the Philippines when the oil industry was deregulated in 1997, allowing the entry of new players aside from the three existing oil giants, Petron Corp., Pilipinas Shell Petroleum Corp., and Caltex Philippines Inc.

TPPC plans to maintain its share in the local oil industry. Last year, it cornered about two percent in terms of overall product and 1.7 percent in terms of pump products.

Attwood said they expect to gain ground in their objective to capture more than 10 percent of the liquefied petroleum gas (LPG) market. The oil new players expect to corner 35 percent of the LPG market this year from 25 percent last year.

Established in August 1997, TPPC had targeted an investment of $130 million for the first five years of operations. This year, the company expects to invest $30 million for 20 service stations and a wet terminal in Manila. It has already $10 million for a distribution terminal in Bataan.

Out of 100 planned stations by year 2003, the company has already completed 39 stations located in various parts of the country.

EPC on the other hand, has a network of 22 gasoline stations in Metro Manila and nearby provinces. It is projecting at least 100 retail stations by the end of 2002. – Donnabelle Gatdula