Sinopec Kantons said its wholly owned subsidiary Sinomart KTS Development has agreed to acquire 95% interest in PT West Point Terminal for HK$3.84 million from PT Mas Capital Trust (MCT) and PT Batam Sentralindo (PBS). In addition, Sinomart Development and MCT will also undertake to subscribe and pay for share capital equal to 25%, up to 30%, of PT West Point. The move will facilitate the financing of a 2.6-million-cubic-meter crude oil and petroleum products storage and oil blending complex and supporting quay and port facilities and a navigation channel dredging construction in the West Point Maritime Industrial Park, in Batam Island, Indonesia.
Sinomart Development and MCT will contribute capital of about US$200 million, up to US$240 million, and US$10.51 million, up to US$12.62 million, respectively.
PT West Point will also lease an area of 75 hectares within the West Point Maritime Industrial Park from PBS to carry out the project, for a term of 30 years from the handover date, and an option to extend for another 20 years.