Hin Leong's Ocean Tankers close US$36m sale of lube assets to India's Hinduja unit

SINGAPORE'S debt-hit Ocean Tankers, once one of Asia's largest vessel operators, has wrapped up the US$36 million sale of its lubricant blending plant and storage facilities in Tuas to Gulf Oil International, a unit of Indian conglomerate Hinduja Group.

The deal, led by Ocean Tankers' judicial managers (JMs) was closed on Wednesday, according to an update to creditors issued by the ship operator's JMs seen by The Business Times (BT).

Ocean Tankers' JMs are Angela Ee and Purandar Rao of Ernst & Young; the JM order on Ocean Tankers ends this month.

Ms Ee said in a statement when contacted by BT: "The JMs are pleased that the sale of Ocean Tankers' lubricant business, including its lubricant blending plant, storage tank farm, terminal facility and certain other assets, to Gulf Asia-Pacific Pte Ltd has been completed."

The sale fulfils one of the purposes of the judicial management, which includes the survival of the company, said Ms Ee, either in whole or part of its undertaking as a going concern, the statement added.

Gulf Asia-Pacific is a subsidiary of Gulf Oil. In a statement on Thursday, Gulf Oil chief executive Mike Jones said the acquisition of the Tuas facility is a "strategic opportunity" to invest further in the marine segment and grow its market share in marine lubricants and other services. It will also provide a regional hub for the subsidiary's business to accelerate growth plans in South-east Asia within the automotive sector, as well as continue to support and grow the existing customer base of Ocean Tankers. He added: "We are also delighted to welcome the associated employees to the global Gulf family".

Last month, BT reported that the sale of the lube assets of Ocean Tankers, a unit of Singapore's failed Hin Leong empire, was set to close after Gulf Oil - a lubricant major and fuel retailer - fulfilled all the conditions precedent under a put-and-call option agreement.

Those conditions included "engaging with the relevant government agency on the assignment of the company's leasehold interests in the facility site and extension of the lease".

Ocean Tankers was one of Asia's largest vessel operators which chartered and operated a fleet of around 160 vessels before trouble hit, and it was placed under JM last year. It is the sister company of Hin Leong Trading, a giant oil trader that has been wound up. These entities, part of the Hin Leong group, buckled under severe debt strain after a pandemic-led oil crash last year.