GP Global sells bitumen assets, lines up storage sales

Dubai-based commodity trading firm GP Global has sold its bitumen complex in Hamriyah, with its other UAE storage facilities lined up for sale as part of the company's debt restructuring plan, several market participants told Argus.

The Hamriyah bitumen plant, which includes a production unit and a 36,000t storage terminal for the heavy oil product used in road paving and industrial sectors, was sold to Dubai-based firm ARIA Commodities at a price indicated in the $10-20mn range.

ARIA Commodities has physical trading presence in grains, oilseeds, foodstuffs and petrochemicals.

GP Global officials declined to comment on the sale, while ARIA Commodities officials were unavailable for comment.

GP Global was forced into the restructuring drive by a failure last summer to win backing from some of its lenders, which left it short of cash.

The sale of the firm's 412,000m³ (2.6mn bl) Fujairah product storage terminal is now under discussion, with agreement likely to be reached by the end of April, market participants said.

The 204,000m³ Hamriyah product storage terminal, which handles a range of products including naphtha, pyrolysis oil, gasoil, MTBE, condensate, fuel oil, kerosine, base oil, bitumen and petrochemicals, is GP Global's another key asset in the UAE.

GP Global had yet to make significant progress by last November to sell key assets to help it stay afloat, but was at that time optimistic about talks with interested parties.

The firm still had tentative plans until late last year to nearly double capacity at its 7,600 b/d Sharjah refinery — which produces naphtha, gasoil, fuel oil and light cycle oil — to 14,000 b/d, although that investment was contingent on its restructuring and asset sales.

The firm completed its purchase of a 50,000 t/yr lubricant blending plant from Nigeria's Grand Petroleum in April last year, subsequently investing in upgrading the facility to meet international quality standards.

By Keyvan Hedvat and Elshan Aliyev