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Pursuant to the Agreement, China Development Bank Hong Kong Branch is delighted to provide financing support for Brightoil’s operations which require approximately US$4 billion, including 1) the acquisition of tankers to expand its vessel fleet; 2) the provision of letters of credit and bank guarantees for Brightoil to expand its petroleum products trading business; and 3) support for any newly developed projects or mergers and acquisitions in China and overseas. China Development Bank Hong Kong Branch shall provide better lending terms to Brightoil, its controlled corporations or other invested companies than those available in the market. China Development Bank Hong Kong Branch shall be the preferred banking service provider for Brightoil to provide various financial services such as loan, deposit, financial management, settlement services, underwriting corporate bonds, financial leasing, advice on mergers and acquisitions, investment banking and financial advisory. Thanks to the support extended by China Development Bank Hong Kong Branch, the co-operation enhances not only the financial strength of Brightoil but also the momentum to further develop its four core businesses. Going forward, this will bring Brightoil more dynamics in moving forward its upstream development, which is deemed to be the Group’s future growth driver. Dr. Sit Kwong Lam, Chairman and CEO of Brightoil, said, “Energy helps ensure and drive the growth of the national economy. The development of the energy and resources sector has always been highly regarded by the Chinese government. China Development Bank, as a major bank strategically serving the country’s developmental needs, fully demonstrates its support for corporations in the energy and resources sector as well as confidence in the long-term development and profitability of Brightoil through this co-operation. We believe that with the support of China Development Bank, Brightoil will go from strength to strength. The Strategic Co-operation Agreement will serve to complement the competitive edges of Brightoil and China Development Bank, reaping synergy to fuel our growth while accelerating the pace of reaching our strategic goals in the upstream business.” Dr. Sit added, “At the same time, through the concerted effort of all of us at Brightoil, we believe we are in a great position to drive the rapid development of our business, ultimately creating greater returns for the bank and investors. We believe the Strategic Co-operation Agreement is only the beginning for a closer partnership and co-operation on a wider scope between Brightoil and China Development Bank. Working together, not only can we achieve mutual benefits, but also contribute to the healthy development of the national energy sector.” About Brightoil Petroleum Brightoil Petroleum (Holdings) Limited is principally engaged in global marine bunkering business, 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 445,000 tonnes. Currently, the Group’s five new build Very Large Crude Carriers (VLCCs) with 318,000 DWT each, with total capacity of 1.59 million tonnes. The Group’s marine fleet will achieve marine transportation capacity over 2 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 second half 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. Press Release distributed by: Brightoil Petroleum (Holdings) Limited |
Brightoil enters into a US$4 billion Strategic Co-operation Agreement with China Development Bank for a term of 5 years