Brightoil Petroleum has decided not to sell its fleet of fifteen vessels “due to a change in shipping market environment.”
The company said it intends to terminate the commercial negotiation with potential investors for the sale of the ships.
In July this year, Brightoil Petroleum announced plans to dispose of the stake in Zhoushan Oil Storage and Terminal facilities and the entire fleet of 15 vessels including VLCCs, Aframaxes and barges.
However, the company noted that since early October this year and up to the current date, the VLCC sector is experiencing a strong up-going market. Brightoil Petroleum believes that the strong market trend will continue in 2019 and wants to continue pursuing the shipping business and maintains stable cash income for the group.
The ships are operated by Brightoil Shipping Singapore (BOSS), a subsidiary of Brightoil Petroleum.
On November 16, 2018, BOSS and Shell International Eastern Trading Company entered into charter agreements in relation to BOSS’s VLCCs and Aframax tankers. BOSS has a total of five VLCCs and four Aframax tankers.
The agreements are expected to commence by the end of this year, according to the company.