Brightoil to buy independent Chinese oil firm

Hong Kong-listed Brightoil Petroleum has signed a memorandum of understanding with Tooltime to acquire Golden Sea (Zhenjiang) Petrochemical Ltd. for HK$1.485 billion (US$191.22 million). Golden Sea currently operates a naphtha processing plant located in Zhenjiang, in southwestern China’s Jiangsu province, which is capable of producing 1.4 million metric tons per year (MTPY) of processed asphalt and other petrochemicals. “Upon the acquisition, the Group (Brightoil) will upgrade its existing equipment, proactively strengthen its production efficiency and install modern production facilities to increase its production and processing capability to 5 million metric tons per year,” said Raymond Sit, chairman and chief executive officer of Brightoil. (July 29, 2010)