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Brightoil cancels purchase of 10 bunker barges from Shenzhen Brightoil Shipping

Brightoil Petroleum's Singapore unit has cancelled a $84m purchase of 10 vessels from Shenzhen Brightoil Shipping, the company said in a stock market release.

Vincent Wee, Hong Kong and South East Asia Correspondent

July 5, 2016

1 Min Read
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Brightoil had earlier announced in April that due to delivery delays, the expected delivery and potential cancellation dates of the deal would be pushed back. However it now appears the deal is completely off, even though Brightoil maintains it is confident about the outlook for the marine bunkering business in Singapore.

"The outlook for marine bunkering business in Singapore is still very positive and the Company would require additional bunker barges to meet the demand in the future," Brightoil said.

It noted however, that "to optimise the existing fleet of five bunker barges operating in Singapore market and consider better utilisation of the Company's working capital, the management decided to be more conservative towards increasing of the size of the fleet at this stage".

The company will buy additional bunker barges from Shenzhen Brightoil Shipping at a more moderate pace as a result. . 

Brightoil said that the termination of the vessel purchase deal will not have any material adverse impact on the existing business of the group as the 80% deposit of $67.2m with 5% interest will be fully refunded.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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