Coastal Oil Singapore buys VLCC for storage

Singapore: Oil trader Coastal Oil Singapore Pte Ltd has secured storage on a VLCC at the Southern Malaysian port of Tanjung Pelepas for about $28 million, writes tankterminals.com.

Malaysian-listed Changhuat Corporation Berhad told Bursa Malaysia on Monday that its subsidiary Arus Dermaga Sdn Bhd (ADSB) has entered into a floating storage agreement with the Singapore trader.

The agreement calls for the provision of a 240,000 metric tonnes VLCC at Tanjung Pelepas for storage of crude oil, fuel oil or alternatively fuel oil blend stocks over a 36 months duration commencing no later than next Sunday, Changhuat said.
According to a statement to the exchange, ADSB's contractual obligation will comprise provision of the supertanker along with operation and maintenance of storage facilities on board.

The contract has been valued at approximately $28 million or RM96 million over the 36 months contract duration.

Coastal Oil Singapore is part of the Singapore-based Coastal Oil Holdings and Hong Kong-based Coastal Holdings group of companies.