Brightoil Petroleum has pivoted on efforts to sell its VLCC fleet and is now closing in on a refinancing of the tankers, TradeWinds has learned.
Hong Kong-listed Brightoil had invited offers on the vessels, and its aframax fleet, from conventional buyers in what has been an elongated process involving some of the biggest names in the industry.
Now, however, Brightoil is working on a sale-and-leaseback transaction with Shandong Shipping, which would ensure it keeps commercial control of the tankers, informed sources said.
Commercial terms have yet to emerge for what is described as a conventional sale and leaseback move for the 320,000-dwt Brightoil Gravity, Brightoil Glory, Brightoil Gem and Birghtoil Galaxy (all built 2012) and the Brightoil Grace (built 2013).
Brightoil announced in July it was considering the sale of the Hyundai Heavy Industries built tankers, alongside other assets, to strengthen its balance sheet.
The VLCCs, which had been initially financed with conventional bank debt, attracted the attention of major players in the sector.
However, when Brightoil chairman Dr Sit Kwong Lam invited interested parties to Singapore for further discussions, those following the business began to question if a sale would take place.
This expectation has now been confirmed with Shangdong Shipping coming to the table.
Tanker market sources in Europe are not surprised a deal has emerged that would keep the tankers under Brightoil’s control and effective Chinese ownership.
However, sources in the Chinese leasing market were shocked to see Shangdong Shipping emerge as the counterparty.
Chinese companies have traditionally been reluctant to provide lease financing for VLCCs given the residual risk associated with oil spills.
The transaction will continue a trend with is blurring the lines between Chinese lessors and conventional shipowners.
Earlier this month Minsheng Financial Leasing became the first Chinese leasing house to break into VLCC ownership, buying two German VLCCs with time charter coverage in what was a classical shipowning transaction.
And in the last two weeks it has emerged Evangelos Marinakis is working in a deal with China Merchants Bank (CMB) and the Industrial and Commercial Bank of China (ICBC) to finance four VLCC newbuildings.
Now Shangdong Shipping, which is an owner rather than a lessor, is set to provide a leasing deal.
