Singapore's Chemoil to sell Chemoil Storage for $285 mln

SINGAPORE Tue Oct 9, 2012 3:28am EDT

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SINGAPORE Oct 9 (Reuters) - Chemoil Energy Ltd is selling Chemoil Storage Ltd, which owns a company providing fuel storage services on Singapore's Jurong Island, to Oiltanking GmbH for $285 million.

Chemoil said on Tuesday it will realise an estimated net gain of around $152.3 million from the proposed sale. It intends to use part of the sale proceeds for its expanding fuel supply business and also to make investments.

"The company believes that structural changes that have occurred in the marine fuels market will in the future favour an asset-light business model that is more able to respond quickly to volatility in volumes and margins," Chemoil said in a statement.

Glencore International Plc has a controlling stake in Chemoil Energy.

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