Philippines: Independent Unioil to Continue Expansion

"There are business opportunities and while everybody is slowing down, Unioil will pursue its expansion plan and build more stations this year," said Unioil Petroleum Philippines Incorporated (UPPI) general manager Chito Medina-Cue. Cue said they will construct additional service and retail stations, and upgrade existing facilities in Metro Manila and nearby provinces. He said they are currently looking for sites in Metro Manila to put up service stations where motorists can buy cheap yet high-quality petroleum products.

"On top of the two stations currently under construction, Unioil is signing and targeting six more sites in Las Piñas, Makati, and Pasay for the initial expansion program this year," he said. The two stations undergoing construction are located in Caloocan and Quezon City. The company has 40 stations nationwide.

Unioil recently upgraded the facilities of its refueling station located at Regalado Avenue in Quezon City prior to the re-opening of the said site this March under new management. Cue said the move is intended to improve customer service at Unioil's Regalado station.

Recently, the oil firm signed a two-year P24 million contract with Silver Tire Traders in General Santos City for the supply of lubricants to the region. It was not the first time that Unioil has made its presence felt in the resource-rich region of Mindanao. As early as 2003, the company's retail network reached the region with its first station located at Ecoland in Davao City. The construction of additional service stations and upgrading of existing facilities is part of Unioil's P90 million expansion program, which started last year.  Each service station costs about P10-15 million.

Cue said the expansion program is a testament to Unioil's growing financial and technical capability considering that it started in 1966 as a "recycling" plant engaged in refining used engine oil. Since then the company has also branched out to other services providing high-grade asphalt to such major infrastructure projects of the government such as the multibillion-peso Iloilo airport upgrade and the Subic/Clark Expressway, one of the centerpiece of the Arroyo administration's effort to improve the transportation infrastructure in the country. It supplies jet fuel to the country's flag carrier, Philippine Air Lines (PAL).

It is also considering venturing into supplying fuel for power plants owned by National Power Corporation (Napocor) while taking care to ensue it adheres to the tenets of environmental conservation by expanding into bio-fuels or alternative energy solutions. Unioil's diversified interests also include marketing and blending of lubricants, oil trade and, most recently, marketing of bitumen, which is used as fuel for industrial use, making it the leading independent petroleum company in the country.

Unioil also owns a modern storage and handling facility in Lucanin, Bataan that paves the way for efficient transfer of products from Bataan to Sta. Ana in Manila. Inside are 18 storage tanks with a total capacity of one million barrels, which will be expanded to 22 storage tanks with an estimated capacity of 1.5 million barrels due to an anticipated increase in demand.

PetrolWorld 050209