Off-take Agreement with Palm Oil Refiner
DekelOil Public Limited / Index: AIM / Epic: DKL / Sector: Food Producers
13 January 2014
DekelOil Public Limited ('DekelOil' or 'the Company')
Receipt of €610,000 advance payment under Off-take Agreement with Palm Oil Refiner
DekelOil Public Limited, operator and 51% owner of an established vertically integrated palm oil project in Côte d'Ivoire, is pleased to announce that it has received 400,000,000 FCFA (approximately 610,000 Euros) out of a total advance payment of 600,000,000 FCFA (approximately 915,000 Euros), as part of an off-take agreement signed with Societe Africaine de Raffinerie ('SAR'), a palm oil refining company in the Côte d'Ivoire, to supply Crude Palm Oil ('CPO') produced from its 60 t/hr extraction Mill.
SAR is in the process of constructing and installing a palm oil refinery on a site in the Industrial Zone of Yopougon, Abidjan. The refinery is targeted to be capable of receiving the first delivery of CPO in Q2 2014. From commencement it will require 6,000 tonnes of CPO per quarter as feedstock. Under the terms of the off-take agreement, DekelOil will deliver 24,000 tonnes per annum of CPO that satisfies SAR's quality thresholds: no higher than 7% acidity and 0.3% moisture content. DekelOil will receive the official AIPH price, which is similar to the CIF Rotterdam price, for the palm oil on the date of delivery of the CPO to SAR's refinery at the Yopougon Industrial Zone. By selling the CPO locally, the Company will benefit from reduced transportation, insurance and marketing costs.
Ahead of the commencement of the delivery of CPO in 2014, SAR has agreed to provide DekelOil with a cash deposit representing 25% of the value of the initial quarterly requirement. Accordingly, as stated above, DekelOil has already received the sum of 400,000,000 FCFA. This development is in line with the Company's strategy to commercialise its assets in order to build a leading West African palm oil company and importantly, the Company continues to negotiate with other parties to further bolster and diversify its customer base.
Dekeloil Executive Director Lincoln Moore said, "This off-take agreement has secured a buyer for our CPO production for the peak harvesting season of March to June. This is a major step in terms of commercialising our assets and maximising returns once production commences in Q1 2014 at our CPO Mill, which will have a capacity to produce 70,000 tonnes per annum. At this point, DekelOil will have one of West Africa's largest mills; a world-class nursery with an annual capacity of 1 million seedlings; agreements with 5,000 local smallholders and cooperatives to supply feedstock for the Mill from over 27,000 hectares of mature plantations; and 1,900 hectares of Company-owned estates. With material revenues expected to be generated in the near term, we are on track to build a leading palm oil company focused on West Africa."
** ENDS **
For further information please visit the Company's website www.dekeloil.com or contact:
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Youval Rasin |
DekelOil Public Limited |
Tel: +44 (0) 20 7024 8391 |
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Shai Kol |
DekelOil Public Limited |
Tel: +44 (0) 20 7024 8391 |
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Lincoln Moore |
DekelOil Public Limited |
Tel: +44 (0) 20 7024 8391 |
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Christian Dennis Jeremy King Roland Cornish Rosalind Hill Abrahams Elisabeth Cowell |
Optiva Securities Limited Optiva Securities Limited Beaumont Cornish Limited Beaumont Cornish Limited
St Brides Media & Finance Ltd |
Tel: +44 (0) 20 3137 1903 Tel: +44 (0) 20 3137 1906 Tel: +44 (0) 20 7628 3396 Tel: +44 (0) 20 7628 3396
Tel: +44 (0) 20 7236 1177 |
|
Frank Buhagiar |
St Brides Media & Finance Ltd |
Tel: +44 (0) 20 7236 1177 |
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Notes:
DekelOil Public Limited is an asset backed, palm oil production and development company focused on becoming a major West African sustainable, low cost producer of Crude Palm Oil ('CPO'). DekelOil plans to rapidly expand its existing palm oil estates in the Côte d'Ivoire as well as what will be, once construction has been completed by the end of this year, one of the largest oil processing mills in West Africa with a capacity of 70,000 tons of Crude Palm Oil ('CPO') per annum. The mill is due to commence operations and generate first revenues in 2014. DekelOil already has 1,886 hectares of planted plantations but until these mature, initial feedstock for the mill will originate from 27,000 hectares of mature palm oil plantations that have been secured under long term contracts with smallholders.
This information is provided by RNS
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