Commodities trading house Trafigura Group on Tuesday (13 August) entered into a non-binding term sheet agreement with shipping firms Frontline Ltd. and Golden Ocean Group Limited to establish a leading global supplier of marine fuels.
Frontline and Golden Ocean will respectively acquire 15% and 10% interests in the joint venture (JV) company, while Trafigura will contribute its existing physical bunkering activities to the new entity.
Subject to agreement on final terms, the JV is expected to commence operations in the third quarter of 2019, and will act as the exclusive purchaser of marine fuels for Trafigura, Frontline and Golden Ocean, as well as certain entities affiliated with Hemen Holding Ltd, Frontline and Golden Ocean’s largest shareholder.
“Today’s announcement represents a further progression in the development of Trafigura’s response to the challenges and opportunities the impending IMO 2020 regulation will present,” commented Jeremy Weir, Trafigura’s Executive Chairman and CEO.
“We look forward to providing an essential service to our clients and working closely with Frontline and Golden Ocean to grow this venture into one of the world’s leading suppliers of marine fuels in the coming years.”
Kenneth Dam, Trafigura’s Co-Head of Bunkering added: “Over the past 24 months, Trafigura has been growing its physical bunkering business worldwide.”
“We believe that marine fuel market disruptions will be brought on by the implementation of IMO 2020 regulations and that the JV’s increased base volumes and greater access to both infrastructure and credit will provide increasingly competitive bunkering supply services to our customers.
“We are confident in our ability to supply quality products at competitive prices to the fleets controlled by the JV partners as well as to third party shipowners and operators.”
Robert Hvide Macleod, CEO of Frontline Management AS and Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS jointly commented: “It is anticipated that IMO 2020 will create logistical marine fuel supply issues for shipowners globally.”
“In addition to presenting a compelling economic opportunity, our participation in the JV will ensure our ability to source and acquire marine fuels at competitive prices on a continuous basis.
“This transaction represents yet another instance where we have been able to leverage our relationship with other entities of Hemen Holding Ltd to create significant economies of scale and a real competitive advantage.
“We look forward to working with Trafigura, our JV partner, to create one of the world’s leading suppliers of marine fuels.”
Published: 14 August, 2019
Seeking bunker claim from 13 unpaid invoices; seven under Term Sales Contracts entered on 30 April 2020 and six under Spot Contracts, according to court documents obtained by Manifold Times.
The representative was providing clarification to a query from Manifold Times when asked if the bunkering licenses of the Hin Leong Trading affiliated company have been permanently revoked.
Patrizia Cosulich becomes first bunker tanker in Singapore to undertake its Mass Flow Meter extension test using the Master Mass Flow Meter, learns bunkering publication Manifold Times.
Bunker claims totalling SGD 628,000 for 88 deliveries of marine gas oil between the period of 7 February 2020 until 15 April 2020, according to documents obtained by Manifold Times.
Event welcomed over 1,100 attendees from 42 countries; delegates visited virtual booths about 4,800 times; while around 5,800 connections were made, according to data from organiser Informa.
Bunker suppliers and bunker craft operators may choose to carry out meter verification using either existing MIMO method OR with the use of a Master Meter.