French oil giant to invest P400 million for Cebu stations

By Ehda M. Dagooc (The Freeman) Updated March 13, 2010 12:00 AM

CEBU, Philippines - French oil giant, Total (Philippines) Corporation (TPC) announced its P400 million investment plan for Cebu in the next three years.

This plan includes the installation of five more stations in Metro Cebu this year, which will incur an investment of P120 million.

In an interview with TPC president and managing director Ernst Wanten, he said that Cebu’s vibrant economy presents a growth opportunity for TPC.

Since its entry to the Philippines in 1998, Total has already installed 133 stations mostly in Luzon. This year, the company has decided to explore the Southern Philippine market, through a stronger presence in Cebu.

As part of its expansion program, the company opened a fuel depot in the province, which has a capacity of two million liters. It also currently upgraded its waterborne fleet with the acquisition of MT Camille, a 3,651 deadweight ton double-hulled vessel classified by the Korean Register Shipping as accredited by the International Association of Classification Societies (IACS). The depot will serve both retail and wholesale consumers.

Total’s strong entry in Cebu will not only provide wider options for consumers to get their fuel requirements, but it also offers business opportunity for entrepreneurs who may want to partner with the Total.

The company offers two packages for entrepreneurs for partnership these are via Company-Owned-Dealer-Operation (CODO) and Dealer-Owned-Dealer-Operated (DODO) options.

Of the total 133 gasoline stations installed by Total in the Philippines, 97 of which are DODO, and 36 are CODO.

In Cebu, Wanten said the company will build the infrastructure, which means the physical gasoline stations, and partnership will depend on the negotiations of interested entrepreneurs.

The first Total station in Cebu is located along Plaridel Street in Mandaue City. It has four pump islands and also has a Bonjour convenience store and Café that offer a wide selection of quality snacks and sundries. It is run by a staff of a 25 personnel.

“Our forefront service crew and Bonjour staff have been trained on the Total brand of customer service, which is what differentiates us from our competitors,” he said.

The Total big boss was here in Cebu to attend the Petro/World Forum held last March 9 to 12 at the Shangri-La Mactan Resort and Spa in Mactan Island.

In the next three years, the company plans to build at least 20 Total gasoline stations around the Cebu Metropolis.

“Cebuanos are different clientele. They are interesting,” Wanten said describing Cebuano customers as more demanding and critical. He said this is what makes it challenging for Total to establish its brand here.

With the quality and competitive products and prices offered by the company, Wanten is confident that Total will be able to hit the taste of the “Cebuano market”.

Total is the fifth largest publicly-traded integrated oil and gas company in the world. It reported sales of 179,976 billion Euro in 2008.