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Second 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 announced the commencement of sales of Crude Palm Oil produced from its 60 t/hr extraction Mill to Adam-Afrique, a local refining company in the Côte d’Ivoire. This forms part of a recently executed off-take agreement , the second DekelOil has secured, 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 Adam-Afrique with a minimum of 5,000 metric tonnes of CPO per annum up to a maximum of 10,000 metric tonnes. The CPO must satisfy the following quality thresholds: no higher than 5% fatty acids; maximum 0.5% 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 2016, at which point it will be renewed for consecutive three year periods unless a written notice of termination is provided by either DekelOil or Adam-Afrique three months prior to the end of the relevant three year period. By selling the CPO locally, the Company will benefit from reduced transportation, insurance and marketing costs.
Dekeloil Executive Director Lincoln Moore said, “Combined with our off-take agreement with local refiner SAR announced earlier this year, we have now secured buyers for our 2014 production. Following operating profitability being achieved during March 2014, the Mill’s first full month of operations, we have as anticipated increased production volumes in April and are maintaining our focus on increasing revenues.”
