FILOIL

FILOIL EXPANSION PROGRAM

FOR THE PROVINCE OF PALAWAN

2006

Prepared By: Jeremy Harry Amar

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 FILOILs
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 cashiers 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.

The Competitive Scene

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

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.

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.

Competitive Analysis
PETRON

SHELL

CALTEX

FILOIL

SUPPLY
ADVANTAGE

Has Own AllProducts Depot in

Puerto Princesa
City

With Supply
Arrangement with
Petron

With Supply
Arrangement
with Petron

With OWN Supply

Depots ( 300 KL
capacity ) to be setup in four strategic
areas

LOGISTICAL
ADVANTAGE

With Fleet of
Haulers

With Fleet of
Haulers

With Fleet of
Haulers

With ready Fleet of

Haulers

RETAIL
MARKET
PRESENCE

Has a retail station

in almost every
town

Has retail station

in almost every
town

Has retail
station in
almost every
town

Will still set up retail

stations through
Business Partners

BRAND
ACCEPTANCE

Nationwide
Coverage

Nationwide
Coverage

Nationwide
Coverage

Via Market Niche

strategy to attain
province wide
coverage

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,
Brookes 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

SOUTH TERRITORY:
Espanola, Narra, Brookes Point,
Rizal, Quezon, Bataraza, Balabac

SUPPLY DEPOT FACILITIES

(Coron, Roxas, Puerto Princesa
City, Narra)

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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
FILOILs 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

BUSINESS PARTNER

RETAIL MARKET

PALAWAN BUSINESS
REPRESENTATIVE

WHOLESALE, COMMERCIAL,
INDUSTRIAL MARKET
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Market Strategy Overview

RETAIL MARKET
Tricycle
Multicabs & Jeepneys

Trucks
Buses
Motorcycle
Cars & SUVs

Small & Medium

Marine Transport
Units

WHOLESALE, COMMERCIAL,
INDUSTRIAL MARKET
Wholesalers/Traders
Mining Companies
Shipping Companies
PALECO & NAPOCOR
Multinational/ Big Companies
with Distribution (Warehouse)
& motorpool facilities

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Project Viability

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Project Viability

Capital Investment for SUPPLY DEPOT

Land Development & Construction Cost:
Php 10 M
(including piping, lighting & electrical, and concreting & other
structures)
Storage Tanks (30,000 Liters capacity x 10):
Php 5 M
(Fabrication Cost/Tank: Php 500,000 x 10 units)

ESTD TOTAL COST FOR FOUR (4) SUPPLY DEPOTS:

Php 15M x 4 =
Php 60 M
Land devt & constn cost

Php 40M

Storage TanK Fabrication

Php 20M

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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 5 M

ESTD TOTAL COST FOR TWENTY EIGHT (28) PORTAGAS

STATIONS: Php 5M x 28 units
= PHP 140 M

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Project Viability
ESTD TOTAL COST FOR FOUR (4) SUPPLY
DEPOTS: Php 15M x 4 =
PHP 60 M
ESTD TOTAL COST FOR TWENTY EIGHT (28)
PORTAGAS STATIONS: Php 5M x 28 units
=
PHP 140 M
TOTAL INVESTMENT COST = PHP 200 MILLION
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Projected Volume

ESTD TOTAL VOLUME FOR TWENTY EIGHT (28)

PORTAGAS STATIONS:
Average Daily Volume:
Average Monthly Volume:

3,500 Liters per PORTAGAS STATION

105,000 Liters per PORTAGAS STATION

Estd Total Volume per Month for 28 PORTAGAS STATIONS:

28 X 105,000 Liters =
2,940,000 Liters per Month

ESTD TOTAL VOLUME FOR COMMERCIAL/ INDUSTRIAL

SALES:
1,000,000 Liters per Month

ESTD COMBINED VOLUME PER MONTH:

3,940,000 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 Constn

Central Depot Operational phase

South Depot Constn

South Depot Operational phase

North Depot Constn

North Depot Operational phase

Upper North Depot Constn

Jan

Feb

Mar

Apr

May

Jun

July

Upper North Depot Operational phase

Sep

Oct

Nov

Dec

2013

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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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