FRENCH multinational integrated energy company TotalEnergies is transitioning its Philippine operations from a joint venture to a franchise model, according to listed Basic Energy Corp. (BEC).
In a stock exchange disclosure on Wednesday, BEC said Filoil Energy Co., Inc. (FEC) will take over the Total brand and business operations under Total Philippines Corp. (TPC).
FEC is TotalEnergies’ joint venture partner in local companies engaged in the supply, distribution, and marketing of petroleum products.
BEC holds a 60% stake in FEC, giving it an indirect interest in FEC’s joint ventures with Total Marketing Services, the Philippine subsidiary of TotalEnergies. These joint ventures include TPC, Filoil Logistics Corp., and La Defense Filipinas Holdings, Inc.
TotalEnergies will continue overseeing operations as the franchisor of the brand and business.
The integrated energy company operates across multiple sectors, including oil and gas, natural gas and green gases, renewables, and electricity.
Under Republic Act No. 8479, or the Downstream Oil Industry Deregulation Act of 1998, no permit or clearance from the Department of Energy (DoE) is required for the transition, according to Rino E. Abad, director of the DoE’s Oil Industry Management Bureau.
The DoE is being updated on company developments through annual company profile reports.
While BEC clarified that it is not involved in the transaction between TotalEnergies and FEC, it said the shift to a franchise model “has no material effect or impact on its business and operations.”
BATAAN SOLAR PROJECTIn a separate disclosure, BEC said it has secured approval from the DoE to proceed with the pre-development phase of its proposed solar power project in Mariveles, Bataan.
The DoE has granted a solar energy operating contract allowing BEC to begin procurement activities ahead of the 25-year contract term.
The solar facility will cover approximately 72 hectares and is expected to generate a peak output of at least 62 megawatts (MW), based on a preliminary assessment by an independent third-party firm.
Following the permit approval, BEC said it will now proceed with securing approvals from relevant national agencies and local government units. It will also conduct a system impact study with the National Grid Corp. of the Philippines.
“We are excited to advance the development of the Mariveles Solar Power Project and remain committed to providing updates as the project progresses,” the company said.
Oscar L. de Venecia, Jr., vice-chairman and chief executive officer of BEC, earlier told BusinessWorld that the company is applying for two solar power projects in Negros and Bataan with a combined capacity of 90 MW.
BEC aims to develop 500 MW of solar and 500 MW of wind energy projects by 2030.
“Once realized and operational, these initiatives are expected to contribute meaningfully to [BEC’s] growth and reinforce its position as a key player in the energy sector,” it said. — Sheldeen Joy Talavera