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CMES, Sinotrans & CSC confirm VLCC partnership

China Merchants Energy Shipping (CMES) and Sinotrans & CSC Group have completed a signing ceremony last Friday on a VLCC joint venture, aimed at serving China’s rising demand for oil imports.

Lee Hong Liang, Asia Correspondent

September 10, 2014

1 Min Read
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The $1.11bn VLCC joint venture was announced in August, with CMES taking 51% of the joint venture and Sinotrans & CSC owning the remaining 49%.

Li Jianhong, director and president of CMES, said at the signing ceremony that the latest deal will help to secure China’s energy needs and raise the global competitiveness of China’s seaborne oil transportation.

As part of the deal, CMES will provide $565.94m worth of assets including nine operational VLCCs and 10 VLCC newbuild contracts, an unspecified equity stake in its subsidiary Haihong Shipping, and some cash. Sinotrans & CSC will put in $543.78m in cash.

The new joint venture is expected to purchase secondhand crude tankers or order newbuildings.

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China

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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