Independent oil player Seaoil Philippines Inc. has entered a long-term strategic partnership with Caltex Australia Petroleum Pty. Ltd. for its expansion programs.
Seaoil announced that it signed a definitive agreement that forges a strategic partnership with the Australian company which will also acquire a 20 percent interest in the company.
“We have long sought for a strategic partner to complement our capabilities and competitive advantage, and we are optimistic that Caltex Australia, whose values we share and whose operations is like ours in complexity, can help accelerate our growth,” Seaoil chairman and founder Francis Yu said.
Under the partnership, Caltex Australia will support Seaoil’s current growth strategy, which aims to double its retail network and terminal storage capacity for the next five years.
“This is an exciting growth opportunity for Caltex Australia. The fact that Seaoil has chosen to enter this partnership with us is a testament to the skills and capabilities we have been building over many years in our company. It also demonstrates the value that can be created from our position as an independent fuel supplier in the Asia-Pacific region. We look forward to being part of SEAOIL’s growth over the coming years,” Caltex Australia CEO Julian Segal said.
Caltex Australia is a 100 percent publicly owned company listed on the Australian Stock Exchange. However, it does not share common ownership with the local Caltex brand owned by Chevron Philippines Inc.
Meanwhile, Seaoil has a six percent total market share in the Philippines and is a pioneer in alternative fuels like bioethanol gasoline and biodiesel. It supplies around 1.5 billion liters yearly in its network.