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LONDON (Alliance News) - DekelOil Public Ltd Monday said it has now signed its third off-take agreement to supply crude palm oil produced from its 60 tonnes-per-hour extraction mill in Ivory Coast.
The crude palm oil producer said the agreement, which was with San Cie, a local refining company, is in line with its strategy to diversify its customer base, commercialise its assets and build towards becoming a leading West African palm oil company.
The company said it will supply Sania with crude palm oil which meets certain conditions in return for an Inter-professional Association of Oil-Palm Industry price for its product. It said the agreement covers an initial period to December 31 at which point it should be renewed.
Dekeloil said the deal means that the company will benefit from reduced transportation, insurance and marketing costs, as the palm oil will be sold locally.
"We have now signed three off-take agreements in 2014 all with local companies, demonstrating strong demand for CPO milling capacity in the Ivory Coast," Executive Director Lincoln Moore said in a statement. "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."
Dekeloil shares were untraded at 1.35 pence on Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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