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Bunker supplier Chemoil Energy Ltd. has announced that it has entered into a letter of intent with Oceanconnect Holdings Inc. to acquire its marine fuels broking business.

Contingent on the acquisition moving ahead, Thomas Reilly, the current Chief Executive Officer and one of the shareholders of Oceanconnect Holdings Inc, would succeed Clyde Michael Bandy as Chairman and CEO of Chemoil.

In a statement Chemoil said that Bandy would continue as non-independent Director and Chairman of the company in order to provide 'a smooth and seamless transition of the managerial leadership to Mr. Reilly'.

"The potential acquisition is expected to include a significant number of key (Oceanconnect marine fuel group) employees located in London, New York, Tokyo, Korea, and Dubai handling an annual sales volume of approximately 8.5 million metric tons," Chemoil said.

"The potential acquisition, if brought to a close, will complement the company's existing core business as a premier independent supplier of marine fuel," the company added.

Chemoil said that it targets to bring the acquisition to a close by the end of the year.