CIMB takes over troubled Johor oil terminal

February 12, 2012

Dateline 2012-02-02:

A CIMB-led consortium has agreed to take over a multi-billion ringgit oil terminal project in Johor following years of shareholding disputes which hobbled the bunkering facility from the get-go.

Bankers involved in the restructuring of Asia Petroleum Hub (APH), the private company awarded rights to develop the terminal, told Singapore’s Straits Times that shareholding issues have been resolved and CIMB has committed to fund the project to completion.

They told the daily the project was about two-thirds complete and that the new consortium hopes to finish it within 18 months.

“Taking over a project for a bank is a little out of the box, but this is a very viable business and there is no reason why CIMB shouldn’t own it as a major investment,” a banker involved in the deal was quoted as saying.

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Malaysian Insider – Malaysia’s Bunkering Ambition

February 12, 2009

Quoting from the Malaysian Insider,

KUALA LUMPUR, Feb 8 – A worsening ownership battle for a planned Malaysian bunkering facility to rival Singapore’s is threatening to derail the project and could hurt one of the country’s largest commercial banks.

The project to build a bunkering depot on a reclaimed island in Johor is being led by a little-known private company called KIC Oil and Gas, which has so far drawn down nearly half of its RM1.4 billion (S$584 million) financing facility from state-controlled CIMB to fund construction work.

But KIC’s failure to resolve problems with another key shareholder of the project, Seaport Terminal, which owns two of Johor’s main ports including Tanjung Pelepas, has prompted CIMB to consider suspending further funding for the construction of the bunkering facility, government officials and financial executives said.

I’ve had some dealings with KIC in the past, and I have actually been on their bunkering ship in the past. Interesting place, you can actually get 3 countries’ cellphone networks onboard (Malaysia, Indonesia, Singapore). And I used to have a few friends in the place, who have now spread out.

Another KIC article here.

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Posted by Wata