Total to open 20 new retail outlets worth P600 million

MANILA, Philippines - Total Philippines is scheduled to open another 20 retail stations with total capital outlay of P600 million by the end of 2011.

The local subsidiary of Total SA of France presently operates a total of 167 stations located mainly in Luzon.

“Although the main focus (of expansion) is still in Luzon, we want to spread out more so that we’re less vulnerable from price wars in a certain region,” Ernst Wanten, Total Philippines president told reporters.

Total will put up some of the additional stations in Negros and Cebu but prefers to keep a distance with conflict-riddled Mindanao.

“Mindanao is always an area, but there’s always an issue of security. If you see our risk mapping, very often Mindanao is pointed out to be a red zone. That’s how it works with big companies, although it’s not all of Mindanao,” he said.

Total already opened 12 stations of the 20 stations it targets to open this year. Each station is estimated at P30 million.

“The cost to build a service station within our norms will cost P30 million, which focuses a lot on our safety standards. You have some competitors who can build service stations for half the price because they don’t have stringent safety rules, which we don’t want to compromise,” the official said.

Wanten said Total is aiming to open 300 to 350 stations to reach a critical mass in the country’s oil industry.

“Next year, we’ll be celebrating our 15th anniversary operating in the Philippines, so we would like to at least reach 200 stations,” the Total Philippines chief executive added.