"Sinopec is interested, and is evaluating the quality and cost of the asset," said the official, who declined to be named as the discussions are not public.
The state oil giant, however, would be cautious about any possible investment given growing internal scrutiny over spending after a plunge in oil prices, and is closely monitoring developments around Hin Leong's debts, the official added. "The terminal is the prize," said Tony Quinn, chief executive of terminals advisory group Tankbank International.
In an affidavit contained in the court filings reviewed by Reuters, Lim Oon Kuin, also known as O.K. Lim, said Hin Leong was in discussions with a large state-owned Chinese energy company over a potential strategic investment, without giving details.