Danish pilot project in the fuel industry soon to start in Cambodia: Million USD investor agreement closed

The parties of a Danish-Cambodian oil industry pioneer project have signed agreement worth 60 million USD. The agreement will result in a major project on supply of maritime bunker fuels to ships on voyages in the Gulf of Thailand. The agreement confirms to the Cambodian authorities seriousness behind the project, which will lead to the final permits in place.

“It has taken two years to get this far, and I do understand that the authorities are careful with this. The parties in this agreement are two Danish companies Monjasa A/S, the Danish-owned GO4 Bunker Cambodia Co., Ltd. and the Cambodian EP Energy, Ltd. We expect that the final permits for GO4 Bunkers are in place within two to three months. The closing of the Capital Invest Agreement is a big step forward and the agreement means that that Monjasa at the same time will outsource the local work to us,” says Tommy Christensen, Director of GO4 Bunker Cambodia, whose parent company is located in Denmark. It will demand capital investment in Sihanoukville from GO4BC on 16 mill. and Monjasa will outsource the project and invest 45 mill.. USD in raw material and marine fuel oil.

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The man behind the whole pilot project, Tommy Christensen, Dr. Men Den, EP oil and with Jan Jacobsen, Monjasa.

According to the parties the project will become operational early in the New Year. The project will supply the shipping in the still busier Gulf of Thailand with bunker fuel. Monjasa sell marine fuel worldwide and is global player. As a Cambodian company GO4 Bunker will use its market knowledge and will operate the tankers and smaller ships to supply bunker fuel. The main base station becomes Sihanoukville in southern Cambodia.

Ian Jacobsen, Director of Monjasa, Fredericia says: “It has been an exciting project to follow and to take part in. As soon as we get the final permits we will proceed to the final phase of the project. We need to find a suitable tanker to complement our smaller ships in delivering fuel to the shipping in the Gulf of Thailand. We are a company focusing on niche production. We do not enter markets dominated by other players. So this project suits us well.”

The Cambodia government is eager to attract foreign investments. However, the authorities have been cheated when issuing permits. The permits have been resold, and the original holder has left the country. Now there is the greatest care in the process of issuing licenses. The bunker-fuel project will have a positive effect on the economy, in particular for the Sihanoukville area. Sales of bunker fuels will not only create jobs, but also create benefits for service companies and many other industries.

 

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