HONG KONG, March 20, 2011 /PRNewswire-Asia/ -- One of the largest global marine bunkering service providers, Brightoil Petroleum (Holdings) Limited ("Brightoil" or the "Group"; stock code: 933.HK) is pleased to announce that the Hong Kong Branch of China Development Bank Corporation ("China Development Bank, Hong Kong Branch") has approved a US$600 million facility to the Group for developing its International Supply and Bunkering ("ISB") business based on an earlier Strategic Cooperation Agreement reached in January 2011, which is worth US$4 billion. This quick approval was made in view of Brightoil's fast-growing ISB operation.
Brightoil planned to use the US$600 million facility to strengthening its ISB operation. According to the Group's interim results announcement, the latest half-year sales volume of the abovementioned operation has already reached 3.4 million tonnes, twice the sales volume on a year-on-year over the corresponding period of the previous year and equivalent to 87% of the sales volume for the whole of the previous year, representing a tremendous growth. To manage price fluctuations in relation to oil procurement, the Group will utilize trading contracts of derivative financial instruments to hedge-spot goods, and thereby further ensure a continued endeavor towards good risk-management for the Group.
Dr. Sit Kwong Lam, Chairman and CEO of the Group, said, "The US$600 million loan facility not only demonstrates China Development Bank, Hong Kong Branch's robust support but it also shows a sound understanding and strong belief in the Company's developmental direction, which is a dedicated commitment to the development of our ISB business. In this regard, the Group is expanding its global bunkering network while actively exploring opportunities, widening its customer's base and consolidating its market position."
Brightoil currently provides customers with bunker supply in major Chinese ports and other international ports, whilst petroleum products trading business can further enhance the existing synergies. As such, the Group is in the process of opening offices or planning to offer services in cities, including Houston, Tokyo, Taipei, Oslo, Rizhao and Qingdao while strengthening the Group's global distribution network.
In addition, business developments under the scope of US$4 billion Strategic Co-operation Agreement are underway. "We think this arrangement supports the growth of our business as a whole," added Dr Sit. "It will extend Brightoil's influence in worldwide markets and rapidly promote the growth of the Company's various businesses."
About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is principally engaged in global marine bunkering business and international supply of petroleum products, oil storage and terminal, marine transportation as well as upstream business. It is one of the largest chain service providers of marine bunkering in China. Currently, the Group is constructing a 2.2 million m3 oil storage facility and a terminal with fifteen 1,000 to 300,000 DWT class berths on Waidiao Island, Zhoushan City in the Yangtze Delta in phase one. The Group will progressively develop the island by starting phase two of the oil storage facility and the total capacity of both phases will reach 5.5 million m3. The Group's construction of up to 12 million m3 oil storage facility in 2 phases and a terminal that could accommodate vessels with capacity of 1,000 to 300,000 DWT, on Changxing Island, Dalian, Bohai Bay has also been commenced. Meanwhile, the Group has purchased four Aframax oil tankers weighing from 107,000DWT to 115,000DWT with total capacity of approximately 450,000 tonnes. Currently, the Group's five new build Very Large Crude Carriers (VLCCs) with 318,000 DWT each, with total capacity of 2 million tonnes, are being constructed. With all nine vessels in place, the Group's marine fleet will achieve marine transportation capacity over 20 million tonnes. On the other hand, the Group has also expanded into upstream business. The Group has successfully teamed up with CNPC for the natural gas development and production in the Tuzi Block, Tarim Basin in Xinjiang Province. The project has a geological reserve of natural gas in place of approximately 22.1 billion m3 and is planned to have its first production in the year of 2011. Along with the increasing trend of the price of oil and natural gas resources in China, it is expected that the value of the Tuzi project will continue to escalate. In the future, the Group will strive to develop the upstream business by stretching its tentacles in the exploitation, production and sale of oil fields with a view to becoming one of the leading global energy conglomerates in the world.
