As per media report, the Chinese refiner Baota Petrochemical Group, a privately run refining and petrochemical group hailing from northwest China, has signed a bareboat charter agreement with a group of leading owners, including Maersk Tankers, Hafnia Tankers, Scorpio Tankers, and Gulf Energy Maritime.
The tie-up is for an overhauling supply of 50-60 oil tankers.
Presence in the Oil Refinery Industry
The deal signed on 18 July sees the Chinese petrochemical group ramp up its presence in the oil refinery industry and gain competitive advantages in the upstream and downstream supply chain.
The Vessels Charter
The vessels will be bareboat-chartered for periods of between 4 and 10 years, Baota said. Singapore’s Mare Maritime Singapore will act as ship manager and financing for the project will be provided by the Australian Pension Fund. The price of the deal was not disclosed.
Baota was founded in 1997 by current chairman Sun Heng Chao in Ningxia, an autonomous region in northwest China. It has total assets worth CNY68.5 billion (USD10.2 billion) and 10,500 employees.
Headquartered in Beijing, Baota Petrochemical Group has six subsidiaries and one listing unit listed on the Shenzhen Stock Exchange. The group has finance and trading platforms in Singapore, Shanghai, and Hong Kong, as well as a presence in Russia and the United Arab Emirates.
Rationale for bareboat charter
In July, the National Development and Reform Commission, China’s economic planner, issued a second batch of crude oil import quotas to 26 refiners, 21 of which were independent refiners. Among the 21 refiners, Baota secured the biggest quotas, amounting to 1.08 million tonnes.
Explaining the rationale for the bareboat charter agreement, Baota said, “The co-operation with global leading tanker owners means a lot to the company’s integration of upstream supply chain and petrochemical transportation, and it also aligned with the company’s future plan and strategy on renewable energy.”
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