Brightoil Takes Delivery of Second 100,000 DWT Ocean-Going Oil Tanker

HONG KONG, May 2 /PRNewswire/ -- Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK), one of the largest service providers of marine bunkering in China, announced that the Group took delivery last Friday of its second ocean-going oil tanker in Japan purchased in March this year. The Group's capacity to transport oil products will be substantially increased while operating costs will be further lowered. As the Group is actively expanding its global marine bunkering operation, the expansion of tanker fleet will create greater synergies. Moreover, it can generate additional revenue by chartering out spare capacity.

Dr. Sit Kwong Lam, Chairman and CEO of Brightoil Petroleum, said, "The Group is determined to create an integrated supply chain for its marine bunkering operation. We are actively developing a global fleet in order to support the rapid growth of our marine bunkering and oil trading businesses. Over the past six months, we have acquired two ocean-going oil tankers with capacity of 107,500 DWT each. It marks an important step towards achieving our goals. Taking advantage of the significant decrease in ship prices, we will establish a fleet comprising ocean-going oil tankers and marine bunker tankers with sizes ranging from 5,000 DWT to 300,000 DWT through acquisition, leasing or hire-purchase arrangements within this and the next financial year. With the expansion of the fleet, we will be able to capture opportunities brought about by the gradual recovery of the global shipping industry."

The Group now owns two ocean-going oil tankers with capacity of 107,500 DWT and a consideration of US$52.5 million (equivalent to approximately HK$409.5 million) each. They will mainly be used for transporting fuel oil or crude oil internationally. Built to Common Structural Rules (CSR), both vessels have stronger and more durable hull structures. The maximum discharge rate of each vessel is 9,000 m(3) / hr. The newly-acquired oil tanker is also equipped with advanced equipment and is eligible for navigation in the European waters.

Dr. Sit Kwong Lam added, "China's marine bunkering sector has experienced phenomenal growth in recent years due to thriving external trade and government policies to open up the bunkering market. According to industry forecast, bonded marine fuel demand in China will escalate to 26 million tonnes by 2015, representing a four-fold increase comparing with the bunker volume in 2008 when the Group has started marine bunkering operation. Brightoil is actively expanding its bunkering business and plans to extend operation to the ports of Rizhao, Tianjin, Dalian, Qingdao and Rotterdam from the existing ports of Hong Kong, Shenzhen, Singapore, Shanghai, Zhoushan and Ningbo. Leveraging on our strong foothold in China, we aim to create a global bunkering network covering all major ports in the world."

About Brightoil Petroleum

Brightoil Petroleum (Holdings) Limited is mainly engaged in global marine bunkering chain business, oil storage and terminal, marine transportation as well as natural gas development and production. It is one of the largest chain service providers of marine bunkering in China. Currently, the Group is constructing a 2.2 million m(3) 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 m(3). The Group's construction of up to 12 million m(3) oil storage facility and a terminal that could accommodate vessels with capacity of 1,000 to 300,000 DWT, on Changxing Island, Dalian, Bohai Bay is about to begin. Meanwhile, the Group has also acquired two 107,500 DWT oil tankers with a plan to form a large-scale ocean-going oil tanker fleet progressively for supporting its marine bunkering business and oil trading business. On the other hand, the Group has also expanded into upstream business. The Group has successfully teamed up with China National Petroleum Corporation 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 m(3) 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 a highly integrated global energy conglomerate.

SOURCE Brightoil Petroleum (Holdings) Limited