Date
20 October 2017
Brightoil Petroleum is planning to expand its upstream and downstream business this year.  Photo: HKEJ
Brightoil Petroleum is planning to expand its upstream and downstream business this year. Photo: HKEJ

Brightoil seeks strategic investors for expansion

Brightoil Petroleum (Holdings) Ltd. (00933.HK) is considering a private placement to strategic investors to fund its expansion plans, the Hong Kong Economic Journal reported Tuesday.

Chief executive Bruce Yung said the company plans to expand its downstream and upstream business this year.

Brightoil has raised its annual production target for natural gas to one billion cubic meters from 750-800 million cubic meters and its trading volume for crude to 20 million metric tons from 15 million metric tons.

Also, the company is in talks with Newfield Exploration about a potential acquisition of a Chinese offshore oil field.

Despite plummeting global oil prices, Brightoil has no plans to cut oil production, Yung said.

Instead, it will slash operating expenses by 40 percent to offset the effects of reduced oil revenue.

Analysts said Brightoil needs cash to shore up its credit line for its planned expansion.

Chairman Sit Kwong-lam controls about 75 percent of the company.

Translation by Vey Wong

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