The newly-formed BP Sinopec Marine Fuels Pte Ltd. will be based in Singapore.
BP and Sinopec Fuel Oil have signed a deal to form a joint venture to provide bunkering operations and sell bunkers in "key global locations," the two companies announced Tuesday.
The newly-formed BP Sinopec Marine Fuels Pte Ltd. will be a 50:50 bunkering joint-venture based in Singapore and is expected to build upon the two company's existing infrastructure.
"In addition to marine bunkering in Singapore, the joint venture will provide marine bunker sales in key global locations," the companies said.
BP gives access to their physical locations against getting access to China
"The ports served by BP Sinopec Marine Fuels Pte Ltd will be: Singapore; Fujairah, United Arab Emirates; Antwerp, Belgium; Rotterdam and Amsterdam in the Netherlands; Tianjin, Qingdao, Shanghai, Ningbo and Shenzhen, China."
Sources say that the deal's distinguishing feature involves giving Britain-based BP access to Chinese markets, according to a report from Reuters,
"BP gives access to their physical locations against getting access to China, which is a very restricted market," said an unnamed trader.
The last 11 consecutive years BP Singapore Pte Ltd. has been the biggest bunker supplier by volume in Singapore, which is also the world's biggest bunker market by volume.
"BP is an established and leading global provider of marine fuels, and Sinopec is a leading provider within China," the companies said.
"Both companies have a long history of working together in China and overseas, and this agreement represents a significant continuation of the relationship."
In 2013, BP also formed a joint venture with a Brazilian company to serve the Acu Superport in Sao Joao da Barra.