FILOIL

FILOIL EXPANSION PROGRAM

FOR THE PROVINCE OF PALAWAN

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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 FILOIL’s
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 cashier’s 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 Arrangement Depots ( 300 KL
ADVANTAGE Puerto Princesa with 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 Has retail station Has retail Will still set up
station in almost in almost every station in retail stations
MARKET every town town almost every through Business
PRESENCE town Partners

BRAND Nationwide Nationwide Nationwide Via Market Niche

strategy to attain
ACCEPTANCE Coverage Coverage Coverage
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,
Brooke’s 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
FILOIL’s 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 7.5M
(including piping, lighting & electrical, and concreting & other
structures)
Storage Tanks (30,000 Liters capacity x 10): Php 3 M
(Fabrication Cost/Tank: Php 300,000 x 10 units)

ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:

Php 10.5M x 4 = Php 42 M
Land dev’t & constn cost Php 30M
Storage Tan Fabrication Php 12M

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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 2.5 M

ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS

STATIONS: Php 2.5M x 28 units = PHP 70 M

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Projected Volume
 ESTD TOTAL VOLUME FOR TWENTY EIGHT (28) PORTAGAS
STATIONS:
Average Daily Volume: 2,000 Liters per PORTAGAS STATION
Average Monthly Volume: 60,000 Liters per PORTAGAS STATION

Estd Total Volume per Month for 28 PORTAGAS STATIONS: 28

X 60,000 Liters = 1,680,0000 Liters per Month

 ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL

SALES: 1,000,000 Liters per Month

 ESTD COMBINED VOLUME PER MONTH:

2,680,000 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 Const’n Central Depot Operational phase

South Depot Const’n South Depot Operational phase
North Depot Const’n North Depot Operational phase
Upper North Depot Const’n Upper North Depot Operational phase

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

2008

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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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