Mobil Sales & Supply Corp., the Singapore subsidiary of Mobil Corp., signed a five-year contract with the oil terminal operator Van Ommeren Singapore for storage on the offshore island of Sebarok.
The contract, estimated to be worth S$25 million (US$12.5 million), gives Mobil 80,000 cubic meters of storage capacity.The arrangement will assist the company's trading activities in the Far East and is an expression of optimism in regional markets, said Christopher Wolcott, general manager.
Mr. Wolcott, who also is chairman of Mobil Asia Services, said Thursday the company has been expanding trading operations in Singapore over the last few years.
Van Ommeren, meanwhile, is planning to add 50,000 cubic meters of chemical storage facilities to the total 800,000 cubic meters it has on Sebarok. About 50,000 cubic meters of that is dedicated to chemicals.
The company said it is also considering plans to build new tanks on another island in a venture with an unnamed partner. Details of this are still being finalized.
In a related move, Dallas-based oil equipment manufacturer Halliburton Manufacturing is expected to invest about S$20 million in Otis Oilfield Manufacturing to set up a local plant that will serve the booming regional oil industry.
The 36,000-square-foot factory will produce precision machines and assemble and test equipment used for oil field construction and operation.