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FACTBOX-Chemoil Energy's global fuel assets

Published 06/24/2009, 05:30 AM
Updated 06/24/2009, 05:48 AM

June 24 (Reuters) - The family of Chemoil Energy founder Robert Chandran is in talks to sell its 51 percent stake in the marine fuel supplier, with trading giant Glencore in pole position, sources familiar with the deal said. [ID:nSIN478340]

Chemoil would give Glencore, the second-largest independent oil trader, a valuable marine fuels business in the United States and fuel storage assets in Singapore, India and the Middle East.

* In Singapore, Chemoil owns the 448,000 cubic metre (cu m) Helios oil storage terminal, which began operations last year.

The terminal, currently occupied by Chemoil, Brazil's Petrobras and Japan's Itochu Petroleum <8001.T>, a Chemoil stakeholder, has the capacity to expand by another 180,000 cu m at a cost of $53 million.

Chemoil has been in talks with the Singapore government for more than a year but no firm plans have been announced. The extra capacity is supposed to be for clean products, mainly gas oil and jet fuel, which the company does not trade in Asia currently.

* Chemoil also has a major presence in the Middle East marine fuels market, trading some 90,000 tonnes a month in the United Arab Emirates' port of Fujairah, the world's third largest bunkering port, after entering the market over a year ago.

It also has a stake in a joint-venture 100,000 cu m terminal there with Gulf Petroleum Supplies (GPS), which is expected to be expanded to 700,000 cu m by 2011.

* In India, Chemoil has a joint-venture with the Adani Group, which owns the country's largest private port in Mundra on the west coast, which is expected to see rapid growth in sales of marine fuels from the current 1.4-1.5 million tonnes a year. The venture also has a 300,000 cu m storage terminal in the port.

* In the United States, Chemoil is one of the main marine fuels suppliers and the largest in Los Angeles and New York, while Glencore's activities are focused in Latin America and the Panama Canal.

The company also traded clean products including jet fuel and diesel in the U.S. for the past five years, turning about 1.5 million barrels a month. (Reporting by Yaw Yan Chong and Luke Pachymuthu; Editing by Ramthan Hussain)

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