BP And Stolt-Nielsen In Shipping Agreement

British Petroleum and Stolt- Nielsen have signed a letter of intent which provides for British Petroleum acquiring an interest in Stolt Tankers and Terminals (Holdings) S.A., the chemicals shipping and related business of the Stolt-Nielsen Group.

It is intended that British Petroleum, through BP Tanker Company Limited, shall acquire a 50 percent equity stake in Stolt Tankers and Terminals, and participate in the management, operations and development of the company. Initially, British Petroleum will advance loan finance of some $50,000,000 to Stolt Tankers and Terminals, which will include selected Stolt-Nielsen companies in the U.S., Japan, Norway, Singapore, Malaysia, Brazil, and Holland.

Stolt Tankers and Terminals is the shipowning, trading and storage terminal company of the Stolt-Nielsen Group. It owns or operates worldwide 31 parcel and product tankers, and has a further 12 on order. Stolt-Nielsen also has interests in the diving and offshore support industry, as well as in tugs and barging in the United States, but these are not included in the agreement. BP Tanker Company is the center of worldwide shipping expertise for the British Petroleum Group. It owns or operates some 130 ships, ranging from very large crude carriers of around 250,000 dwt to product carriers of 15,000 dwt.

The successful outcome of these negotiations, which are subject to the final approval of the Stolt-Nielsen shareholders and of the board of the British Petroleum Company Limited, will lead to a material strengthening of one of the three major international parcel tanker companies.

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