Phoenix, Petronas deal talks run out of gas

MANILA, Philippines — The partnership between Phoenix Petroleum Philippines Inc. and Malaysia’s state-run energy giant Petronas remains stalled, showing no signs of progress even after more than two years.

Phoenix, owned by Davao-based businessman Dennis Uy, signed a memorandum of understanding (MOU) with Petronas in March 2023 to jointly explore a potential venture in the Philippine downstream market.

Despite mutual intention, however, the collaboration has yet to advance beyond the signing.

“At the moment, there is no further development with regard to the MOU signed with Phoenix Petroleum in 2023,” the Malaysian gas company said in a statement to The STAR.

Nevertheless, Petronas said it remains open to new opportunities as it continues to actively explore potential partnerships globally.

“(The company) constantly reviews and revalidates its strategic options and partnerships subject to technical and commercial feasibility,” it said. 

The partnership between Phoenix and Petronas was envisioned to provide the former with access to the latter’s branded marketing products, including fuel and fluid technologies. 

Had it materialized, the strategic tie-up would have also enabled Petronas to expand its presence in the Philippines.

The MOU marked the second collaboration between the two parties following Phoenix’s acquisition of Petronas’ entire liquefied petroleum gas business in the Philippines in 2017.

As an integrated energy company, Petronas currently operates in over 100 countries.

Phoenix, meanwhile, recently disclosed plans to sell its gasoline station in Cebu to Top Line Business Development Corp. for P8.5 million. 

The planned sale aligns with the company’s strategy to raise capital in response to mounting obligations to creditors and shareholders.

 Phoenix is also finalizing negotiations on a liability management exercise to restructure its debt in a bid to facilitate financial recovery.

 “Once this is finalized, then we project the company’s eventual recovery and improvement, as we can already attract potential investors and working capital funding,” it said in a disclosure last week.