China?s Huayou to distribute Buton?s marine fuel oil in China

Hong Kong Bourse-listed firm Sino Prosper Resources Limited (SPRL) announced on Friday it had entered into the Co-operation Agreement with China Huayou Group Corporation (Huayou) for the distribution of marine fuel oil to be produced from Buton Island, Southeast Sulawesi.

SPRL said Huayou would act as distribution agent of SPRL in China for the marine fuel oil produced or extracted from the Buton Bitumen Mine for a period of 10 years.

?SPRL agreed to supply not less than 1,200,000 metric tons of marine fuel oil to Huayou for the first year after production or extraction which is estimated to be prior to the year 2007,? SPRL said in a statement to the bourse.

According to the statement, the FOB price for marine fuel oil trading market of Singapore on September 21, 2005 was US$330.70 per metric ton.

SPRL, through its 65 percent-owned Indonesian subsidiary PT Sino Prosper Indocarbon, has recently secured five licenses to explore bitumen resources over a total area of 24,382 hectares on Buton Island.

Huayou is a wholly-owned subsidiary of Chinese state-owned oil and gas firm China National Petroleum Corporation. (Robert)