Brightoil’s First Ocean Tanker in Singapore

January 10, 2010

Brightoil Petroleum (Holdings) Limited, one of the largest service providers of marine bunkering in China, announced that the Group has taken delivery of its first ocean-going oil tanker in Singapore purchased in November 2009 for the consideration of $52.5m.

The double-hulled aframax oil tanker, with a capacity of 107,500 DWT, has an overall length of 799.8 ft. Built in Japan in 2009, it is coupled with three sets of cargo pumps, each having a discharge rate up to 3,000 m3/hr and hence totaling a maximum discharge rate of 9,000 m3/hr. The vessel is built to Common Structural Rules (CSR), the latest standard for newly-built tankers, featuring increased strength requirements and durability of hull structures to make it safer and more dependable to operate.

The oil tanker will mainly be used for transporting fuel oil or crude oil internationally. The group has been contemplating the formation of a fleet of vessels comprising ocean-going oil tankers and marine bunker tankers with sizes ranging from approximately 5,000 DWT to 300,000 DWT through acquisition, leasing or hire-purchase arrangements for the purpose of supporting its marine bunkering and petroleum products trading businesses and to provide marine transportation services to its customers. The Group intends to charter out the oil tanker to generate additional revenue and to streamline the procurement process for its core marine bunkering business worldwide.

Dr. Sit Kwong Lam, Chairman and CEO of the Group, said, "The delivery of our first ocean-going oil tanker represents a milestone for Brightoil Petroleum in rolling out its marine transportation business. This is in line with the group's business strategy and it also marks an important step for us to expand our fleet of vessels. The group reckons the timing to purchase an oil tanker is highly attractive given the current price of a newly-built high quality tanker vessel is down from around $80m in 2008. In addition, the group also anticipates benefits from the gradual recovery of the shipping industry."

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