Asia/Pacific News
Chemoil's Bunker Business Will Still Use Helios After Sale
Chemoil Energy Limited (Chemoil) will continue to operate its bunker business from the 270,000 cubic metre capacity Helios terminal on Jurong Island, Singapore after it completes its planned sale to Germany's Oiltanking GmbH (Oiltanking), according to market sources quoted by Platts.
"It will now continue on at Helios as a leaseholder, as per its existing contract after the takeover by Oiltanking," an Oiltanking company official said.
Market sources said other leaseholders or sub-leaseholders at Helios, which include Itochu, Petrobras, and Brightoil, will also continue to operate as per their existing contracts.
The $285 million cash deal for Chemoil Storage Limited was announced last week and has a completion date currently set to December 18, 2012.
Commenting on the rationale for the sale, Chemoil said, "The Company believes that structural changes that have occurred in the marine fuels market will in the future favour an asset-light business model that is more able to respond quickly to volatility in volumes and margins."
