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RETAIL OF OIL PRODUCTS (source: Department of Energy, various oil companies)

The Philippines is a major consumer, although minor producer, of gasoline and oil products. Its growing population and increasing number of industries demand a large bulk of these products to be able to continue and sustain its activities. In the past years, the Philippines downstream oil industry has been dominated by the three biggest oil players, Petron, Shell and Caltex (now Chevron). Since the Oil Deregulation Law was implemented in 1998, however, small industry players like Seaoil, Flying V, and Unioil were able to enter the industry. Their entry has paved the way for competition and provided more opportunities for small businesses. Other than gasoline and oil production, the companies ventured into other business activities such as franchising, and operation of convenience centers. For example, Petron has Treats and Caltex has partnered with 7-11 convenience store. An individual who wants to invest in the gasoline station business now also has an opportunity to engage in complementary businesses. There are also opportunities in energy production, particularly in generation of electricity. Electricity demand in the Philippines is expected to grow by around 9% per year until the end of the decade, necessitating as much as 10,000 MW of new installed electric capacity. The Philippines is the world's second largest producer of geothermal power, and has a strong potential for wind generation. Listed below are the basic requirements and procedures of major industry players for the retailing of their petroleum products. FRANCHISE OF GASOLINE STATIONS

Oil Company

Investment Costs Minimum of P5 million investments will be required. Exact amount will depend on the size/location of the station.

Dealership requirements and terms

Caltex/Chevron http://www.caltex. com/ph/en/ph_ret ailer.asp contact Retailing Relationships Coordinator at Tel. No. (632) 841-1687 or 0918-8015326 or Email IRFilio@chevron. com

There are several dealership types available and your options include: 1. Company-Owned Retailer Operated (CORO) The dealer puts up the necessary working capital and invests on basic service equipment while Caltex invests in the real estate, building, signages, pumps and underground tanks. The dealer pays Caltex a fixed monthly rental. 2. Retailer-Owned Retailer Operated (RORO) - The dealer invests in the real estate, building, pumps, underground tanks and basic service equipment. Caltex provides the standard service station design/layout drawings and signages. 3. Branded Marketer (BM) - A strategic partnership between the Branded Marketer and Caltex, with the objective of strengthening the presence and growth of the Caltex brand within an identified area.

4. Retail Operator (RO) The entry level opportunity to operate a Caltex station. A sub - trade of CORO involving a smaller investment. A potential dealer must: have made a decision to be self-employed or invest in his or her own business be willing to locate to the area offered and available live by our philosophy and core values be system oriented, a team player, and understand market share be safety conscious be customer facing have retail or customer service experience possess management experience be able to take on a management role with profit and loss responsibility possess a management history of developing people successfully be financially qualified (amount varies, depending on market) have an acceptable credit and security background The process for Retailer Selection involves the following steps: 1. Application A properly accomplished hard copy of the form must be delivered to the Retailing Relationships Coordinator at the 7th floor of 6750 Building Ayala Avenue Makati City, Philippines. Click here to download the application form. Kindly email the Retailing Relationships Coordinator for a copy of the application form. 2. Home Interview This step is to be done by your assigned Business Consultant. 3. On-The-Job and Evaluation Training - Applicant must meet the minimum requirements in the pre-screening which involves a 5-day course that teaches business planning and basic service station knowledge (classroom and on-site). The training fee is due and demandable on the first day of the OJET Training. 4. Processing - Processing fee is due and demandable after completing and passing the OJET Training but prior to Business Plan Presentation. 5. Retailer Selection Board - Applicants must present their business plan to a management panel.

6. New Retailer Training Course After an applicant is selected by the Retailer Selection Board. He/she must attend a 4-week course that tackles everything you need to know about running your own Caltex Service Station. The fee for the course is due and demandable on the first day of the New Retailer Training Course (NRTC). Flying V http://www.flyingv-gas.com/ Business Development and Site Selection Department or Customer Service at Tel. No. (632) 448-7069 to 72. Offices: D. Tuazon 47 D. Tuazon St., Sta. Mesa Heights, Q.C. Tel. No. (632) 711-1118; 7111180; 448-7069 to 72 Fax No. (632) 743-4531 Email: flyvtuazon@flying -v-gas.com Columbia Tower Unit 96 9/F Columbia Tower Ortigas Ave., Mandaluyong City Tel. No. (632) 726-7640; 7233379 Fax: (632) 7233379; 727-6044 P1.8-6.5M, depending on the size of the area Qualifications for Gas Station Operators: Dynamic and Innovative Entrepreneur, capable in the Hands-on operation and management of a gasoline station. Good moral character and of good credit standing. Must be willing to undergo a two-week Operatorship Training Must abide with Flying V rules and regulation on forecourt service maintenance, safety and cleanliness Operator must be a single proprietor Financially Capable Required Cash Deposit upon signing of Operator Agreement Minimum operating capital requirements Secure Business Registration Permits, BIR, Mayor's Permit and other local permits Funds to purchase capital assets such as air compressor, generator set, office equipments, etc. Maintaining good financial relationship with Flying V

Emai flyvcolumbia@flyi ng-v-gas.com Petron Corporation http://www.petron. com/ Luzon applicants: Regional Manager Luzon Retail Petron Corporation Jesus St., Pandacan, Manila Tel. No. (632) 563-8521 to 40 Visayas and Mindanao applicants: Regional Manager VisMin Retail Petron Corporation Mandaue Terminal, Looc, Mandaue City Tel. No.(632) 344-7341 Cost varies from P3-6M and depends on the size of the intended site. Musts: 1. Meet established capitalization required for a given dealership (this will range between 1 million to 9 million depending on the type of trade and type of station available). 2. Be able to dedicate most of his time, if not all, in running the station. 3. Be dynamic and have the aggressiveness and desire not just to operate a service station business but to be the number one in his trading area. 4. Be perceptive to new ideas and suggestions, pleasing in personality, and have good moral character that will assure the company of loyalty. 5. Be willing to undergo a five-week Dealer Management course. 6. Have no past record of criminal case. 7. Not be operating any existing Petron station or that of any other oil company. How to apply: Accomplish the Dealer Application Form (downloadable from www.petron.com) consisting of three parts: Part I. Dealer Application Part II. Financial and Personal Statement Part III. Business Plan Submit application to the address indicated. Seaoil http://www.seaoil. com.ph/ Marketing Department Tel. No. (632) 397-1010 Franchise Fee: P350K Refundable Investment: minimum of P3.8M (station size and volumedependent) How to apply: 1. Submit a letter of intent to the Marketing Department stating candidates desire to become a SEAOIL Franchisee. 2. Secure and fill up one of the standard Franchise Application Forms. It can be downloaded from the website. 3. Provide a photocopy of Community Tax Certificate to be used in executing a Franchise Agreement and

Frontage: Minimum 25 meters Lot Size: 375 sqm and up Return will vary on the size and location of the station

Equipment Lease Contract. 4. Submit a Bank Certification and/or Financial Statement indicating cash and/or assets amounting to at least 3.8 million pesos. 5. Schedule an appointment with any Marketing Personnel for the submission of the above documents. Seaoil also customizes its franchise package. One can franchise existing stations or it can build a new station. One can also choose from the following different types of equipment: Electronic Dispensing Pumps Mechanical Dispensing Pumps Underground Tanks ranging from 2,000 6,000 gallons Seaoil Signages

Shell http://www.shell.c om/ Real Estate Project Manager Retail Philippines Shell House 156 Valero Street Salcedo Village Makati City 1227 Tel. No. (632) 816-6501 Fax No. (632) 816-6565 Unioil http://www.unioil.c om/ Retail business development: Contact no. (632) 564-1991 loc. 233 Email address: retail@unioil.com

Cost varies from P3-5M and depends on the size of the intended site

Musts: Have business acumen Be a hands-on dealer Be willing to undergo the dealership program assessment and evaluation

Franchise Fee: P250400K Total Capital Investment: P2.2-P4M Marketing/A dvertising Fee: P50,000/ye ar

Qualifications: 1. Entrepreneurial and open to innovation and change. 2. Possess the drive to actively market the products within his territory. 3. Attend to the distributorship on a full-time basis. 4. Must be familiar with his territory. 5. Willing to undergo Unioils Distributorship Training Course. 6. Not presently engaged in any business with competing brands. 7. Preferably with existing facilities, manpower and network. 8. Pleasing personality and good moral character. 9. Can provide collateral.

6 Steps to earn a UNIOIL Franchise 1. Verbal Inquiry: Request for the following forms from the Retail Department Dealership Application Form Customer Information Sheet (CIS Form) Questionnaire for Data Gathering 2. Submit: The following documents must be submitted together with the accomplished forms listed above. Lot Plan Vicinity map Photocopy of the Transfer Certificate of Title/s covering the property/ies. DTI Registration Mayor's Permit CTC of Business Income Tax Return VAT / Non-VAT Certificate of Registration Last three (3) years Financial Statements Bank Certification Authorized Personnel to issue purchase order and to receive products. Recommendation Letter to Customer of Approved Term and Limit 3. 4. 5. 6. Project Study And Franchisee Evaluation Project And Franchisee Approval Contract Signing Start Of Project