US$461m investment in Singapore project will boost firm's trading activity
PetroChina has agreed to take a 35 per cent stake in what will be the region's largest oil storage facility project to complement its growing overseas oil trading business, according to industry sources.
The company, China's largest oil and gas producer, would invest US$461 million in the Universal Terminal project of Singapore-based private oil trader Hin Leong Trading on Jurong Island, said sources quoted by Reuters.
The investment would help PetroChina reduce reliance on third-party facilities and gain flexibility in its oil trading activities, especially when importing oil into the mainland, oil traders said.
An official at PetroChina's oil trading arm, PetroChina International (Chinaoil), told the South China Morning Post the investment had been 'pretty much decided', although it was not yet disclosable.
PetroChina's spokesman in Beijing was unavailable for comment.
Hin Leong's spokeswoman would only say: 'Details are still being worked out and finalised.'
