TotalEnergies Sells PH Retail, Keeps Fuel & RE Plans
- April 3, 2025
Earlier this month, reports emerged that TotalEnergies is making a full exit from its energy ventures in the Philippines, particularly its downstream oil business. A well-placed industry source disclosed that the French multinational is not merely scaling back but withdrawing entirely, with employees informed of the decision.
If so, TotalEnergies is set to become the first major foreign player to depart from the industry it once helped shape following the 1998 Oil Deregulation Law.
A report also questioned whether the Philippines is becoming less attractive to international energy firms, noting that TotalEnergies’ exit comes amid industry shifts and rising competition from domestic firms.
Before acquiring TotalEnergies’ oil business, Filoil Corporation, led by Raffy Villavicencio, had been partners with the French firm since 2016. That year, Total Marketing Services, the local subsidiary, formed a joint venture with Filoil to grow its fuel operations. Their collaboration included Total Philippines Corp. (TPC), Filoil Logistics Corp., and La Defense Filipinas Holdings Inc.
(Also read: Study Reveals Solar and Wind Energy’s High Costs in the PH)
TotalEnergies issues official statement
According to TotalEnergies, it has finalized the sale of its fuel retail business to Filoil. However, the company will continue its fuel trading and pursue its planned investments in renewable energy (RE).
TotalEnergies further stated that “following the acquisition, the three companies are fully owned by the Filoil group, which will retain rights to continue operations under Total brands for up to three years.”
However, Basic Energy Corp. (BEC), which holds an indirect stake in TPC, revealed that the joint venture between Filoil Group and TotalEnergies is shifting to a franchise model.
Filoil will manage operations under the Total brand, while the French firm remains a franchisor. BEC declined to share further details due to confidentiality agreements.
TotalEnergies Benefited as PH Opened RE Sector
In 2022, TotalEnergies partnered with Japan’s ENEOS for renewable energy projects in Asia, though no specific ventures in the Philippines have materialized yet. Currently, TotalEnergies operates a solar plant in Tarlac and offers solar solutions for the commercial and industrial sectors.
The French company was among the foreign firms that took advantage of the Philippines fully opening its RE sector to foreign investors. The policy, which took effect on December 8, 2022, aims to attract global investment and support the country’s climate goals.
To promote renewable energy investment and usage, the Philippine government has introduced various incentives and policies. Under the Renewable Energy Act of 2008, investors benefit from tax breaks and financial advantages.
These include a seven-year corporate income tax holiday, followed by a reduced 10% tax rate, exemptions on carbon credit taxes, and a 1.5% cap on real estate taxes for renewable energy facilities. Additionally, the purchase, grid connection, and transmission of renewable energy are exempt from value-added tax.
(Also read: Meralco Refund Update: What Consumers Need to Know)
History of TotalEnergies in the PH
TotalEnergies has played a significant role in the downstream oil sector for over two decades since the industry’s deregulation.
It was also among the few to openly criticize the politicized oil industry and warn against widespread smuggling that undermined fair competition.
TotalEnergies previously held a stake in an upstream oil and gas exploration project over a decade ago but later withdrew after the venture proved commercially unviable.
TotalEnergies once held an interest in the Sulu Sea basin but withdrew after determining the reserves were not commercially viable.
Beyond the Philippines, TotalEnergies maintains a substantial presence in the fuel retail sector. The company operates an extensive network of service stations in regions such as Europe and Africa.
Additionally, TotalEnergies has streamlined its retail network in certain areas. For instance, in Brazil, the company agreed to sell its fuel distribution business, including 240 service stations, to SIM Distribuidora, a subsidiary of Grupo Argenta.
Statement from DOE
When asked about the recent development, Oil Industry Management Bureau Director Rino Abad stated that the Department of Energy (DOE) has not yet received formal notification of the changes.
Abad explained that under the Oil Deregulation Law, the parties involved are not obligated to obtain a permit or license for the transfer of interest.
The director also noted that the agency intends to meet with Filoil and Total officials to assess how the franchise setup could impact ownership, as it may influence Total’s existing registration as an oil industry player.TotalEnergies maintains its other ventures in the country through its shared services or business process outsourcing (BPO) unit, which provides global support in accounting, procurement, IT, training, HR administration, and facilities management.
Sources:
https://mb.com.ph/2025/3/17/total-energies-quietly-pulls-out-of-ph
https://www.aseanbriefing.com/news/philippines-opens-renewable-energy-to-full-foreign-ownership
https://mb.com.ph/2025/3/20/total-energies-assures-continued-ph-operations-after-fuel-divestiture
