Brightoil's Singapore Subsidiary Agrees To Buy Another 10 Bunker Vessels for Delivery Throughout 2016

by Ship & Bunker News Team
Friday January 1, 2016

Brightoil Petroleum (Holdings) Limited (Brightoil) Wednesday announced that its Singapore subsidiary has agreed to buy ten bunker vessels from a company controlled by its chairman Sit Kwong Lam

Brightoil said the vessels will be purchased for $8.4 million each, amounting to a total purchase price of $84 million.

It was said the vessels will be purchased from Shenzhen Brightoil Shipping, a company controlled 72.98 percent by chairman Sit.

The company said it was seeking to "lock the current low price of the bunker barges in order to save costs", using the expanded fleet to increase it competitiveness in the bunkering business.

The vessels will be built by Rizhao Kingda, or other shipyards agreed by the parties.

Brightoil said it will deposit 80 percent of the purchase price within five days from the date of the agreement, with the remaining 20 percent due 30 days after delivery.

The company noted that the purchase would be completed using bank loans and internal funds.

The vessels are expected to be delivered between March and December of 2016, Brightoil noted, at a rate of roughly one vessel every month excluding the months of May and August.

In December, Ship & Bunker reported that Brightoil had struck an initial deal to buy one vessel from a company controlled by its chairman.