Golden Ocean Group Limited and Frontline have teamed up with Trafigura Group to establish a global supplier of marine fuels.
Golden Ocean and Frontline will acquire 10 percent and 15 percent interests respectively in the joint venture, and Trafigura will contribute its existing physical bunkering activities to the new company.
Subject to agreement on final terms, the JV is expected to start 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, Golden Ocean and Frontline’s largest shareholder.
“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,” Birgitte Ringstad Vartdal, CEO of Golden Ocean Management AS, and Robert Hvide Macleod, CEO of Frontline Management AS, jointly said.
“We look forward to working with Trafigura, our JV partner, to create one of the world’s leading suppliers of marine fuels,” they added.