Hong Kong-based Winson Oil buys a massive ship in July for $28 million in order to grow its operations in Europe

According to two company sources, Winson Oil, a Hong Kong-based trader, has purchased a very large crude carrier (VLCC) to store oil in the Mediterranean and is looking forward to growing its operations in Europe.  According to dealers, if the company decides to buy in bulk on the spot market to load the vessel, the move might increase Asian Gasoil margins. One of the sources revealed that Winson purchased the VLCC in July for $28 million and changed its name to Winson No. 5. The person requested anonymity because he was not authorized to speak to the media.

 

The ship is currently docked in Shenzhen, China, for maintenance and repairs and it will be transported there in approximately a month or two, when it will be prepared to accept oil products.According to the source, the ship would initially sail to Singapore before making its way to the Mediterranean Sea for offshore inventory storage and he also stated that gasoil will be stored on board. He did not provide a timeline for the relocation to Europe.

Shipping information on the Reuters Eikon terminal indicates that the tanker, which was built in 2001, has a capacity of about 2 million barrels of oil. According to the source, the move is a part of the company’s aspirations to grow in Europe. He further continued that, Winson Oil will conduct business in European markets through a location that was established in Dubai in February, 

As per sources, some of the expenses could be reduced by owning a vessel. Storing gas oil in VLCC is unusual because it can be more expensive than using tanks on shore. Winson Oil, with its head office in Hong Kong, has recently increased its oil trading activities in Singapore, where its trading arm is situated. It often purchases gasoil from Taiwan and sells it as bunker fuel into North Asia.

According to the company’s website, it has offices in Hong Kong, Singapore, Taiwan, China, Dubai, and other Asian nations. Its fleet totals more than 25 ships. Due to the purchase of the VLCC, the company has no intentions to cut the number of onshore tanks it leases to store gas oil.The sources continued that the cost of a VLCC charter from the Middle East to Asia has been reached a fresh four-month high of about $40,200 per day.

 More about Winson Oil

Since its establishment in 1998, Winson Oil has grown to become one of Asia’s leading energy trading firms. It enjoys widespread recognition throughout Asia for its oil trading and bunkering operations. With offices and/or projects currently located in Hong Kong, Singapore, Taiwan, Mainland China, Dubai, and other Asian nations, the Group is able to provide customers a wide range of services.

 

The Group is still linked to important Asian refineries through solid and dependable relationships. Any client may rely on their highly skilled staff to provide complete supply chain services, including logistics planning, distribution of shipping services, onshore oil tanks, and boats. Winson Oil aims to provide all products and services in a very effective and expert manner, with a constant focus on the needs of the customer.

 

Winson Oil collaborates significantly with a number of nations, including Timor-Leste, South Korea, China, Indonesia, Singapore, and the Philippines. By capitalizing on its strong market position and thorough understanding of customer needs, the Group has been successful in creating three main business categories, including international oil trading, global maritime bunkering, and oil storage and terminal services.The Group will begin work on the project for Oil Storage and Terminal facilities while concentrating on extending and improving its current core activities. The Group is always looking for new opportunities for expansion and development in order to boost up its core competencies.Winson Group will continue to follow its corporate motto, “Catering to your Needs,” in order to offer its valued clients the best services.

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