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Hong Kong-listed Brightoil Petroleum (Holdings) Ltd. has confirmed that it has entered into an agreement with Shenzhen Brightoil Shipping to purchase 'Vessel 319' for a total cash consideration of US$8,400,000.

The Rizhao Kingda-built vessel is currently at Rizhao, China, where final preparatory steps for delivery are being undertaken.

Commenting on the reason for the purchase, Brightoil said: "Having established itself as one of the leading suppliers of marine bunkers in Singapore, the group considers that the purchase of the bunker barge will (i) enhance the competitive strength in the bunkering business of the group by expanding the operating fleet and (ii) bring in additional revenue to the group through increased marine bunker sales volumes."

Brightoil added: "The entering into the MOA is not expected to have a material impact on the Group's asset/liabilities ratio and liquidity.

"The directors (including the independent non-executive directors) are of the view that the terms of the MOA [memorandum of agreement] was determined after arm's-length negotiations, and are on normal commercial terms in the ordinary and usual course of business of the group, which are fair and reasonable and in the interests of the group and its shareholders as a whole."