Asia Oil Terminal Services (AOTS), advised by DLA Piper, has today signed construction contracts with supporting guarantees for the development of its project to construct South East Asia’s largest independent oil terminal facility. The facility will be constructed on the East Coast of Peninsula Malaysia by China Railway Construction Bridge Engineering Group Co. Ltd (CRCBEG).
AOTS is a Malaysian company involved in the development of large-scale oil infrastructure projects in South East Asia.
The new oil terminal is the anchor project of the Tanjong Agas Oil & Gas and Logistics Industrial Park’ (the ‘Park’), situated in the State of Pahang on the east coast of Peninsular Malaysia, fronting the South China Sea. The Park operator plans to service both upstream exploration activities as well as downstream operations, including crude oil storage, refining, product blending and storage and liquefied natural gas storage. The Park is additionally gazetted as a ‘private port’ in a special economic, free trade zone.
CRCBEG is a large state-owned construction enterprise in China that covers project contracting, survey design consultation, industrial manufacturing, real estate development and logistics. It follows an integrated approach to service delivery offering a complete industrial chain comprising research, planning, prospecting and designing, construction, supervision, maintenance, operation and financing.
The AOTS facility will be the largest independent oil storage terminal in South East Asia and is to be strategically located adjacent to the major shipping lanes to and from China, Japan, South Korea and South East Thailand. The facility is being built largely to support the crude oil supply needs of China, by providing an off-shore base to “break bulk” oil imports into China.
DLA Piper’s Energy and Infrastructure Finance team has been advising on the deal, led by partner Charles Morrison assisted by senior associate Adam Blythe and associates William McCann, Lauren Kelsall and Ruth Conolly. DLA Piper’s Financial Markets team, led by Martin Bartlam, is currently advising on the bond funding for the project.
A.K.M. Ismail, Vice Chairman of AOTs, added: “We are pleased that CRCBEG has come in as the Principal Sponsor of the project and to have DLA Piper, together with Mott McDonald and Ernst & Young, advising us on this important transaction. We are confident that following today’s signing, the professional team are well positioned to achieve financial close of the Project.”
