Independent oil player Phoenix Petroleum Philippines Inc. will be on continued expansion binge next year, setting P400-million capital expenditures (capex) to be earmarked chiefly for its retail network build-up.

In a briefing with reporters, Phoenix Petroleum president and chief executive officer Dennis Uy said the company casts 40 to 50 more stations next year, the bulk of which will be constructed in Luzon and Mindanao.

While half of the oil firm’s capital outlay will be for gasoline stations, the other P200 million will be allotted for depots and logistics.

As far as capital infusion is concerned, Uy said “we will likely tap debt markets and other instruments and a mix of internally-generated funds.”

The 2010 capex was a bit lower than this year’s allocation of P600 million. But company executives emphasized chunk of that went to the acquisition of their depot in Batangas.

By year-end, the company would have already enlarged its retail network to 120 stations, with 22 of these constructed in various areas in Luzon.

The company first established its niche in Mindanao, until it worked on its Luzon expansion which Phoenix Petroleum did so strategically upon acquisition of its Batangas handling facility.

“We were on track as far as meeting our target to become a major independent player,” Uy noted, stressing that the 40-50 expansion for stations will further bolster the company’s place in the deregulated oil industry.

The company has been working with prospective partners on a franchising set-up for the additional stations planned under Phoenix Petroleum’s sleeve.

There are two modes in which tie-ups can be sealed with the oil firm – either through a dealer-owned-dealer-operated (DODO) arrangement or company-owned-dealer-operated (CODO) scheme.