France’s TotalEnergies stays as franchisor in Philippines

MANILA, Philippines —  Paris-based multinational oil firm TotalEnergies is staying on as a franchisor for the Total brand and operations in the Philippines, according to Basic Energy Corp.

BEC, which has an indirect interest in Total Philippines Corp. (TPC), said the joint venture between the Villavicencio-led Filoil Group and TotalEnergies is “transitioning into a franchise setup.”

The listed firm said the French energy giant would remain a franchisor as Filoil Philippines Corp. takes charge of continuing the Total brand and business operations under TPC.

BEC did not provide further details, citing the confidentiality agreement executed by the concerned parties.

Asked to comment on the recent development, Oil Industry Management Bureau director Rino Abad said the Department of Energy (DOE) has yet to receive an official notice regarding these changes.

Abad clarified that the parties are not required to secure a permit or license for the transfer of interest under the Oil Deregulation Law, which liberalizes the country’s downstream oil industry.

“The update to DOE on this is reflected in their annual company profile update,” he said.

According to Abad, the agency plans to meet with Filoil and Total officials to determine the impact of this franchise setup on ownership, as this may affect the current registration of Total as an oil player.

In 2016, Total Marketing Services, the Philippine subsidiary of TotalEnergies, agreed to establish a joint venture with Filoil to expand their fuel business in the country.

The joint venture companies include TPC, Filoil Logistics Corp. and La Defense Filipinas Holdings Inc.

TotalEnergies has been present in the Philippines since 1998, the same year when the Oil Deregulation Law was enacted.

The company is involved in multi-energy activities from fuel and lubricant distribution, renewable energy development and shared service center operations that provide back-office support to affiliates worldwide.