Wires

Singapore's Chemoil to sell Chemoil Storage for $285 mln

SINGAPORE, Oct 9 (Reuters) - Chemoil Energy Ltd isselling Chemoil Storage Ltd, which owns a company providing fuelstorage services on Singapore's Jurong Island, to OiltankingGmbH for $285 million.

Chemoil said on Tuesday it will realise an estimated netgain of around $152.3 million from the proposed sale. It intendsto use part of the sale proceeds for its expanding fuel supplybusiness and also to make investments.

"The company believes that structural changes that haveoccurred in the marine fuels market will in the future favour anasset-light business model that is more able to respond quicklyto volatility in volumes and margins," Chemoil said in astatement.

Glencore International Plc has a controlling stakein Chemoil Energy.

(Reporting by Eveline Danubrata; Editing by Anshuman Daga)

((eveline.danubrata@thomsonreuters.com)(+65 6403 5669)(ReutersMessaging: eveline.danubrata.reuters.com@reuters.net))

Keywords: CHEMOIL/