China Integrated Energy, a non-state-owned integrated energy company in the People's Republic of China (PRC), has signed a letter of intent to enter into a partnership with Chongqing FengDou Keyu Trade Co Ltd to provide petroleum products to marine vessels.
The company plans to invest approximately $8.2m and own 51% of the partnership and it is expected to sell an estimated 50,000 tons of petroleum products to Chongqing FengDou.
The company said that the sale of these petroleum products is expected to generate revenues of $45.0m over the next 12 months.
The company estimates that it will spend approximately $6.0m in working capital to support the business.
The company expects to enter into a definitive agreement by the end of first quarter of 2011, after all necessary due diligence has been completed.
Chongqing FengDou sells petroleum products to marine boats.