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Techfast forms bunkering JV with Fultonn Marine and Wise Marine; poised to become shipowner

03 Jun 2021

Malaysia-listed investment holding company Techfast Holdings Bhd subsidiary Fast Energy Sdn Bhd on Wednesday (2 June) entered into a Joint Venture Agreement (JVA) with bunkering firms Fultonn Marine and Wise Marine Pte Ltd (Wise Marine) for the purchase of suitable product tankers for carrying out oil and gas trading activities.

Amongst other items, under the JVA are:

  • Fultonn Marine shall be responsible for attending to and completing the purchase of the Tanker and bear all costs and expenses in relation to the operation of the Tanker. Fultonn Marine shall be the registered proprietor of the Tanker and shall also be responsible for carrying out oil and gas trading activities with the Tanker.
  • Fast Energy shall pay the purchase price in respect of any Tanker purchased by Fultonn Marine and bear the cost and expenses arising in respect of the regulatory approvals, licenses and certifications required for the purchase of the Tanker.
  • Wise Marine shall pay to Fast Energy a monthly sum representing a portion of the profits generated from the oil and gas trading activities undertaken by Fultonn Marine. The profit payment shall be stated in a definitive agreement to be entered into between the Parties after completion of the purchase of the Tanker.

RM 1.46 billion (USD 350 million) bunker supply contract with Wise Marine

Further, Fast Energy on 2 June entered into a three-year supply agreement with Wise Marine where Fast Energy will supply low sulphur fuel oil (LSFO), low sulphur marine gasoil (LSMGO), and high sulphur fuel oil (HSFO) to Wise Marine.

Fast Energy has agreed to supply not more than 20,000 metric tonnes each month of the Products to Wise Marine on the average price per metric tonne as reported by S&P Global Platts in Singapore (Mean of Platts Singapore), plus an agreed premium throughout the contract period effective for the relevant shipment of the Products on the weighted moving average for each month (inclusive of the first and last day of the month).

The total contract value for the supply is estimated at Ringgit Malaysia One Billion Four Hundred Sixty Million Five Hundred NinetyTwo Thousand only (RM1,460,592,000.00) based on the present market prices reported on Mean of Platts Singapore.

Related: Techfast net profits dive 41% in 2020; positive outlook for bunkering subsidiary
Related: Malaysia: Techfast Holdings enters MYR 540 million MGO bunker supply agreement
Related: Malaysia: Techfast Holdings & Wise Marine ink USD 540 million bunker supply contract
Related: Malaysia: Techfast starts oil trading unit, unveils bunker supplier ambition with proposed CCK Petroleum acquisition
Related: Malaysia: Techfast Holdings acquires 35% stake in bunker trading firm CCK Petroleum

 

Photo credit: Techfast Holdings
Published: 3 June, 2021

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