Ocean Tankers completes sale of lube plant to Gulf Oil
The judicial manager of Singapore-based Ocean Tankers, once one of Asia’s largest vessel operators, has completed the sale of its lubricant blending plant and storage facilities in Tuas to Gulf Oil International, part of India’s Hinduja Group.
Mike Jones, chief executive of Gulf Oil International, said Ocean Tankers’ lube blending plant offers a strategic opportunity for the company to invest further in the marine segment and grow its market share in marine lubricants and other services. It will also provide a regional hub to speed up its business development plans in Southeast Asia within the automotive sector.
The facilities were valued at USD36 million. The lube business was valued at USD1.3 million. The deal is still subject to closing conditions.
“The inventory sum is subject to adjustment to reflect the value of various items in the company’s inventory as of the completion date. Parties are still in the process of calculating the value of these items,” according to Singapore’s Straits Times.
Along with Hin Leong, Ocean Tankers came under full judicial management in August last year due in part to its exposure to potential claims stemming from its dealings with the oil trader. The claims have been estimated at around USD2.67 billion.
Ernst & Young (EY) is the judicial manager of Ocean Tankers. The sale fulfills one of the purposes of the judicial management, which is “the survival of the company, or the whole or part of its undertaking as a going concern.” The judicial management order on Ocean Tankers ends in July.