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Singapore –
Brightoil Petroleum (Holdings) Limited, a Hong Kong-listed oil and gas company, announced Friday talks to sell or secure investors for its oil and terminal storage facility in Zhoushan as part of the restructuring plan.
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According to the company's website, Zhoushan's oil storage and oil terminal facilities have 13 berths that can accommodate ships up to 300,000 dwt and a total oil storage capacity of about 3, 16 million cubic meters.
The badet sales planned by Brightoil come at a time when the port of Zhoushan is becoming an interesting bunkering destination for China.
The port has become in 2018 the largest bunker fuel supplier in China, with sales estimated at 3.59 million tons, up 97% from one year to the next. The increase was attributed primarily to a change in government policy in the middle of the year, reported earlier S & P Global Platts.
In July 2018, the Chinese Ministry of Commerce approved a new blending and export policy in the Zhejiang Free Trade Zone, allowing locally registered oil companies to mix imported raw materials to produce fuel oil without fuel. tax that can be sold as bunker fuel or re-exported. .
"Many interested players are taking positions in Asia and China before the IMO 2020," said an industry source about the increasingly stringent rule in limiting content. sulfur marine fuels established by the International Maritime Organization.
Zhoushan was becoming an important maritime hub, mainly because of China's recent focus on cleaner marine fuels, in line with stricter environmental regulations in international shipping and in designated waters. he added.
Another industry source said: "Zhoushan is opening and many trading companies are showing interest."
However, he noted that Zhoushan's sales were still minimal compared to ports such as Singapore or Ulsan.
At the same time, Brightoil said he was currently in talks with financial institutions to refinance his tankers.
In November, the company announced that it had signed a charter agreement with Shell International Eastern Trading Company regarding VLCCs and Aframax tankers from its subsidiary Brightoil Shipping Singapore Pte Ltd.
CLAIMS OF THE CREDIT
The reorganization of Brightoil, which includes a debt reorganization and new financings, comes at a time when the company is facing claims from creditors estimated at approximately $ 250 million.
The bunker industry globally is facing increased competition from tighter margins, which have been under sustained downward pressure since crude prices fell in 2014.
The sector came under additional pressure later in the year due to the unexpected bankruptcy of Danish trader OW Bunker. Shipowners and oil producers have had to rebadess the counterparty risk. Some have decided to reduce their use. The situation has been precarious since then.
Brightoil's proposed projects include "the renewal of existing credit facilities, the takeover of existing borrowings by certain key financiers and / or the disposal of the group's badets with a view to raising capital to repay part of the existing debts and improve the group's liquidity, "company said in a statement.
On January 8, Broad Action Limited filed with Brightoil a petition for liquidation in Hong Kong of an alleged and unpaid prepayment of approximately $ 42 million in respect of the Company's non-redeemable, non-convertible convertible bonds. in November 2015, Brightoil said.
"Through friendly consultations, under a settlement, Broad Action Limited and the company have filed a subpoena in court for the withdrawal of the motion," said Brightoil.
Last year, two creditors also filed in Singapore petitions in liquidation against the company's subsidiary, Brightoil Petroleum (S & P) Pte Ltd, or BOPS.
On December 13, BOPS requested a moratorium under Section 211B of the Singapore Companies Act to prohibit any legal action.
The moratorium has since been extended until March 31, 2019, said Brightoil.
Meanwhile, Brightoil's shares have been suspended from the Hong Kong stock market listing since October 2017 after deferring publication of the group's results for the year ended June 30, 2017.
– Surabhi Sahu, [email protected]
– Edited by Wendy Wells, [email protected]
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