Asia/Pacific News
Brightoil to Continue with Acquisition of Singapore Bunker Tankers Despite Setbacks
Hong Kong's Brightoil Petroleum (Holdings) Limited (Brightoil) this week announced complications with the acquisition of two newbuild bunker tankers.
Ship & Bunker reported in August Brightoil would purchase two newbuild bunker tankers via two special purpose subsidiaries for $9 million each, with chairman Dr. Sit Kwong Lam named as the beneficial owner of the companies selling the barges.
The "open market" value of the two vessels was noted to be $20 million.
One of the tankers, Vessel 666, was delivered to Brightoil's Singaporean Subisidiary 666 in September but needed immediate repairs before entering service.
Consideration for the acquisition has been reduced by $50,000.
The other tanker, Vessel 639, is understood to have been detained by Haidong Shipyard, where both vessels were built, pending payment by the vessel's seller.
Brightoil's Singapore Subsidiary 639 has agreed with the seller to withhold payment until November 30, or sooner if the ship is delivered before that date.
"The Directors are of the view that it is beneficial for the Company and its Shareholders as a whole to continue with the acquisition as it would incur further costs and time to look for another suitable vessel of same quality within similar price range," said the company in Monday's statement.
The company intends to use the tankers to grow its Singapore bunker supply business.
"Having established itself as one of the leading suppliers of marine bunkers in Singapore, the Group considers that the purchase of these two bunker barges will (i) enhance the competitive strength in the bunkering business of the Group by expanding the operating fleet, (ii) bring in additional revenue to the Group through increased marine bunker sales volumes," the company said in its original statement.
Brightoil is said to be investing heavily in Chinese upstream assets, with $1 billion per year slated for purchases in each of the next 3 to 4 years.
