Asia/Pacific News
New Bunker Barge for Brightoil Singapore Subsidiary
Brightoil Petroleum (Holdings) Limited (Brightoil) Wednesday said it has signed a memorandum of understanding to buy a bunker barge from Shenzhen Brightoil Shipping, a company controlled by its chairman Sit Kwong Lam.
The company said that its Singapore-based Subsidiary 326 will pay $8.4 million to Shenzhen Brightoil Shipping to purchase the bunkering vessel, an amount said to have been determined after arm's length negotiation between the parties with reference to a third party.
Shenzhen Brightoil Shipping is 72.97 percent controlled by Lam, the company noted.
Brightoil said it expects the purchase to "enhance the competitive strength in the bunkering business of the Group by expanding the operating fleet" as well as "bring in additional revenue to the Group through increased marine bunker sales volumes."
It was said that the purchased vessel is currently being built by Rizhao Kingda at Rizhao, China, and is expected to be delivered on January 15, 2016.
The cancellation date for completion of the deal was said to be March 15, 2016.
Earlier this year Ship & Bunker reported Brightoil had undertaken similar transactions between Shenzhen Brightoil Shipping and Singapore-based Brightoil subsidiaries.
