Sinopec to build oil storage tanks in Batam
Wednesday, October 30 2013 - 01:47 AM WIB
China?s Sinopec Engineering Co. Ltd. on Tuesday signed a framework master agreement with Sinomart KTS Development Ltd to become the general contractor among other things for the construction of the latter?s oil storage tanks in Batam.
The storage tanks will be located in West Point Maritime Industrial Park on Batam Island. SINOPEC said in a statement the scope of services to be provided by the company primarily includes the design, the procurement of equipment and materials, construction and project arrangements, post-completion coordination and trial operation and related services, and the maximum fees payable in relation to our services are expected to be approximately US$738 million.
Sinomart KTS is a wholly-owned subsidiary of Hong Kong-listed Sinopec Kantons Holdings. Sinopec Engineering and Sinopec Kantons are both controlled by China Petrochemical Corp.
The Batam Project Framework Agreement shall take effect upon satisfaction of certain conditions, including Sinopec Kantons obtaining independent shareholders? approval at its special general meeting.
The contract term shall be two years commencing from January 1, 2014 till December 31, 2015, the company said in the statement.
Editing by Reiner Simanjuntak