The Board of Directors of PETONE (“Board”) wishes to announce that its indirect wholly-owned subsidiary, OPLL had on 21 February 2017 entered into the Addendum Agreement to extend the duration of the Surveyor Agreement for a further period of two (2) years effective from 1 January 2017.
Under the Surveyor Agreement, OPLL is to provide consultation services for ship-to-ship (“STS”) transfer operation for oil products stored on the oil tanker vessel chartered or owned by ASL (“Vessel”).
2. BACKGROUND INFORMATION ON ASL
ASL (Company Registration Number: 1762798) is a company incorporated in the British Virgin Islands and having its office address at Suite 605, China Insurance Group Building, 141 Des Voeux Road, Central Hong Kong. The director of ASL is Hamed Kachoee.
3. SALIENT TERMS OF THE ADDENDUM AGREEMENT
The salient terms of the Addendum Agreement are as follows:
(i) OPLL and ASL are desirous to extend the tenure of the Surveyor Agreement for a further period of 2 years from 1 January 2017, with the new expiry date being 31 December 2018 and the Surveyor Agreement shall remain in full force and effect unless terminated earlier by either party in accordance with the terms set out in the Surveyor Agreement; and
(ii) Save for the abovementioned, all other terms and conditions of the Surveyor Agreement shall remain unchanged.
For information purposes, the salient terms of the Surveyor Agreement are as follows:
(i) OPLL shall provide consultation services in relation to STS transfer operation which include technical management, commercial management, accounting services, supply of provisions at ASL expense, bunkering and assisting and arranging for the application of relevant permits and licences; and
(ii) ASL shall pay to OPLL for their consultation services a monthly consultation fee of USD115,000.00.
4. FINANCIAL EFFECTS
The Addendum Agreement does not have any effect on the share capital, substantial shareholders’ shareholdings, net assets and gearing of PETONE. The Addendum Agreement is expected to contribute positively to the consolidated earnings per share of PETONE for the FYE 30 June 2017.
5. APPROVALS REQUIRED
The Addendum Agreement is not subject to the approval of shareholders of PETONE or any regulatory authorities. The Addendum Agreement is not conditional upon any other corporate exercise undertaken or to be undertaken by PETONE.
6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the directors of PETONE and/or major shareholders of PETONE and/or persons connected to them have any interest, direct or indirect, in the Addendum Agreement.
7. DIRECTORS’ STATEMENT
The Board is of the opinion that the Addendum Agreement is in the best interest of PETONE and its subsidiaries.
This announcement is dated 21 February 2017.