Fortune firm to invest in US$75m depot

PUBLISHED : Tuesday, 21 April, 1998, 12:00am
UPDATED : Tuesday, 21 April, 1998, 12:00am

London-listed Hong Kong-based oil trading and distribution firm Fortune Oil says one of its subsidiaries has signed a letter of intent to invest in a US$75 million crude oil storage facility in Maoming, Guangdong.

Its 56 per cent-owned Maoming Kingming is in talks with Maoming Petrochemical Corp, which holds 2.5 per cent of Fortune Oil, to invest in the one million cubic metre oil depot. Various financing options are being explored as the parties discuss the terms of the proposed investment, including a throughput contract with Maoming Petrochemical.

Fortune Oil expects the necessary approval to be obtained by the end of this year with the facility completed in three phases by 2001.

It is one of three big projects, estimated to cost more than $75 million each, that Fortune Oil has been studying in the oil infrastructure sector.

Maoming Kingming operates the mainland's first single-point mooring crude discharge facility near Maoming.

Maoming Petrochemical, which owns 30 per cent of Maoming Kingming with the remaining 15 per cent held by Hong Kong-based Carefree Development, is the main user of the crude discharge facility and will also be the main user of the proposed storage facility.