Asia/Pacific News
Brightoil's Singapore Subsidiary Cancels Order for 10 Bunker Barges
Brightoil Petroleum (Holdings) Limited (Brightoil) Thursday announced that its Singapore-based subsidiary, Shenzhen Brightoil Shipping (Shenzhen Brightoil), has signed a termination agreement, cancelling its order for 10 bunker barges.
As Ship & Bunker previously reported, Brightoil said the vessels would be purchased for $8.4 million each, amounting to a total purchase price of $84 million from a company controlled by its chairman Sit Kwong Lam.
"The outlook for marine bunkering business in Singapore is still very positive and the Company would require additional bunker barges to meet the demand in the future," said Brightoil.
"However, to optimise the existing fleet of 5 bunker barges operating in Singapore market and consider better utilization of the Company's working capital, the management decided to be more conservative towards increasing of the size of the fleet at this stage and would buy additional bunker barges from Shenzhen Brightoil Shipping on a more moderate pace."
Shenzhen Brightoil is said to have paid an 80 percent deposit on the total cost of the vessel, which will be refunded on or before July 29, with interest applied thereon at a rate of 5 percent per year from the date of Shenzhen Brightoil's deposit payment until refund is completed.
In October, Brightoil announced that it was looking to give its bunker business a boost with the launch of Brightoil Online, said to be the "first 'internet-petroleum-finance' comprehensive energy and financial e-commerce platform in the PRC."
