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Brightoil Discussing Sale of Zhoushan Oil Terminal, 15 Ships

Hong Kong-listed energy company Brightoil Petroleum is in talks with potential investors to sell part or entire stake in Zhoushan Oil Storage and Terminal and 15 shipping vessels.

The fleet put up for sale includes very large crude carriers (VLCCs), Aframaxes and barges.

The move is being pursued as a means of boosting the company’s financial strength.

“The company shall make further announcement once the details and terms of the two intended sales are ironed out and agreed, and until then it should be noted that these intended sales are still at a preliminary stage, and investors are advised to exercise caution when dealing in the shares and securities of the company,” Brightoil said.

Zhoushan Oil Storage facility, which is under construction, has a total capacity of 3,160,000 cbm. The stage one of the development will bring the facility’s capacity to 1.94 million cbm, while phase two offers capacities of 1.22 million cbm. Under the construction plan, the terminal facility will be equipped with 13 berths which can accommodate vessels ranging from 1,000 to 300,000 dwt.

Brightoil Shipping Service Company (BOSS), a subsidiary of the group, owns and operates a fleet of nine oil tankers with total capacity in excess of 2,000,000 DWT.

Based on the data from VesselsValue, the company’s fleet is comprised of five VLCCs built in 2012 and 2013 valued at a total of USD 319 million, four Aframax tankers, valued at around USD 86 million and six small clean tankers intended for bulkering worth around USD 45.6 million. The entire fleet of the company is valued at over USD 450 million.