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Third Off-take Agreement to Supply Crude Palm Oil from 60 t/hr extraction Mill in Côte d’Ivoire
DekelOil Public Limited, operator and 51% owner of an established vertically integrated palm oil project in Côte d’Ivoire, has signed an off-take agreement with Sania Cie, a local refining company in the Côte d’Ivoire, to supply Crude Palm Oil produced from its 60 t/hr extraction Mill.
This is the third off-take agreement DekelOil has signed and is in line with its strategy to diversify its customer base, commercialise its assets and in the process build a leading West African palm oil company.
Under the terms of the Agreement, DekelOil will supply Sania with all available CPO that satisfies the following quality thresholds: no higher than 5% fatty acids; maximum 0.3% moisture and impurities content; 39 degrees Celsius melting point and an iodine value of 50-55. In return for the CPO, DekelOil will receive the official AIPH price, which is similar to the CIF Rotterdam price.
The agreement covers an initial period to 31 December 2014 at which point it will be renewed for successive twelve month periods unless a three month notice of termination is provided by either DekelOil or Sania. By selling the CPO locally, the Company will benefit from reduced transportation, insurance and marketing costs.
Dekeloil Executive Director Lincoln Moore said, “Having already secured buyers for our 2014 CPO production through off-take agreements with local refiner SAR and local manufacturer Adam-Afrique, we are delighted to further diversify our customer base with the addition Sania. We have now signed three off-take agreements in 2014 all with local companies, demonstrating strong demand for CPO milling capacity in the Côte d’Ivoire. Along with a demand / supply imbalance for CPO across West Africa, we believe there will be no shortage of additional buyers for our CPO as and when they are required.”
