July 12, 2011 [Reuters HK] - China Brightoil expects to become a major global bunker supplier in the coming 2 or 3 years. It has agressive plans for expanding itself in the lucrative upstream oil business. The budget has set aside USD 2.5-3 billion for upsteam investments; in the meantime, Brightoil also plans to seek oil terminal projects in Europe and US.
With China’s strategy for global resources, this private bunker supplier obtained early this year from China Development Bank a commitment of USD 4 billion in strategic financing, to support the company’s purchase of ocean-going oil tankers, expansion of oil trade business and acquisitions at home and abroad.
Brightoil’s Chairman, Xue Guang Lin, when accepting the interview from Reuters on Monday, said that the majority of the financing from China Development Bank will be used for upstream acquisitions, “60-70% of Brightoil’s future business will be diverted to upstream development.”
Brightoil’s CEO for upstream business, Gregory J. Channon disclosed that Brightoil is seeking upstream business around the globe, including Africa, North America, South America, in the forms of acquisition, merger, joint venture, etc. He believes an acquisition can be confirmed within this year.
Earlier, Brightoil concluded a product sharing contract with PetroChina’s parent company, CNPC group for Tuzi Gas Field in Xinjiang. Brightoil is holding 49% equity of this gas field. This gas field will become operational at year end the earliest, with a daily production of 3.6 million m3 LNG.
This company has a market value of about HKD 20 billion. At the moment, it is focused on downstream business such as oil storage, transportation, trading and bunkering. In the future, with expansion in upstream business, its status as a comprehensive energy company will be further consolidated.
