Petrochemical and fuel oil trader CEFC International has tied up with a subsidiary of Rizhao Port Group (RPG) to build and operate oil storage facilities in Rizhao port in China.
The joint venture between CEFC's wholly owned subsidiary, Hong Kong CEFC Petrochemical and Energy Pte Ltd, and Rizhao Port Oil Terminal will have an initial registered capital of 350 million yuan, with CEFC Hong Kong subscribing for a 49 per cent stake for 171.5 million yuan in cash.
Rizhao Port Oil Terminal will satisfy the consideration for its 51 per cent stake by transferring to the JV company the land on which the facilities will be constructed, and contribute the balance amount in cash if the value of the land is less than 178.5 million yuan.
The project will cost some 700 million yuan, including land costs and construction and development of the oil storage facilities. The remaining 350 million yuan of the project cost will be funded by bank borrowings.
SOURCE: CEFC International