GOGL - Golden Ocean Group Limited and Frontline Ltd. invest in Bunkering Joint Venture with Trafigura
August 13 2019 - 02:45AM
Golden Ocean Group Limited (“Golden Ocean”)
(NASDAQ and OSE: GOGL) and Frontline Ltd. ("Frontline") (NYSE and
OSE: FRO) (together, the “Companies”) today announced that they
have entered into a non-binding term sheet agreement with Trafigura
Group (“Trafigura”) to establish a leading global supplier of
marine fuels (the “JV”). Golden Ocean and Frontline will acquire 10
percent and 15 percent interests in the JV, respectively and
Trafigura will contribute its existing physical bunkering
activities to the JV. 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, Golden Ocean and Frontline, as well as certain entities
affiliated with Hemen Holding Ltd, Golden Ocean and Frontline’s
largest shareholder.
Birgitte Ringstad Vartdal, CEO of Golden Ocean
Management AS and Robert Hvide Macleod, CEO of Frontline 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.”
Jeremy Weir, Trafigura’s Executive Chairman and
CEO, commented: “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. 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.”
August 13, 2019
The Board of DirectorsGolden Ocean Group Limited Hamilton,
Bermuda
Birgitte Ringstad Vartdal: Chief Executive Officer, Golden Ocean
Management AS+47 22 01 73 53
Per Heiberg: Chief Financial Officer, Golden Ocean Management
AS+47 22 01 73 45
Trafigura’s Global Press Office: +41 22 592 45 28 or
media@trafigura.com
Notes to Editors
About Golden Ocean Group
Limited
Golden Ocean is one of the world’s largest
listed dry bulk shipping companies, based on market capitalization
and trading liquidity. The company owns or controls a modern fleet
of 77 vessels with an aggregate carrying capacity of approximately
10.7 million deadweight tons and an average age of less than 6
years. Golden Ocean's significant scale is further enhanced by its
commercial platform, which manages 44 additional vessels on behalf
of third parties. Golden Ocean is listed on both the NASDAQ and
Oslo Stock Exchanges under the symbol 'GOGL'. Visit:
www.goldenocean.bm
About Frontline Ltd.
Frontline Ltd. is a world leader in the seaborne
transportation of crude oil and refined products. The Company owns
and operates a large, modern fleet of 63 vessels with an aggregate
carrying capacity of approximately 12.2 million deadweight tons and
an average age of 4.3 years. Due to Frontline’s brand, financial
flexibility, and significant scale, it holds a unique position
among its peers. Frontline is listed on both the New York and Oslo
Stock Exchanges under the symbol “FRO.” Visit: www.frontline.bm
About Trafigura
Founded in 1993, Trafigura is one of the largest
physical commodities trading groups in the world. Trafigura
sources, stores, transports and delivers a range of raw materials
(including oil and refined products and metals and minerals) to
clients around the world. The trading business is supported by
industrial and financial assets, including 49.3 percent owned
global oil products storage and distribution company Puma Energy;
global terminals, warehousing and logistics operator Impala
Terminals; Trafigura's Mining Group; and Galena Asset Management.
The Company is owned by around 700 of its 4,300 employees who work
in 66 offices in 38 countries around the world. Trafigura has
achieved substantial growth over recent years, growing revenue from
USD12 billion in 2003 to USD180.7 billion in 2018. The Group has
been connecting its customers to the global economy for more than
two decades, growing prosperity by advancing trade. Visit:
www.trafigura.com
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. Forward-looking statements
include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
Words, such as, but not limited to "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions. Although Golden
Ocean believes that these assumptions were reasonable when made,
because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible
to predict and are beyond the control of Golden Ocean, Golden Ocean
cannot assure you that they will achieve or accomplish these
expectations, beliefs or projections. The information set forth
herein speaks only as of the date hereof, and Golden Ocean
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
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