Frontline, Golden Ocean invest in bunkering joint venture with

The joint venture, expected to commence operations in the third quarter this year, will act as the exclusive purchaser of marine fuels for the three partners, as well as certain entities affiliated with Hemen Holding, the largest shareholder of Frontline and Golden Ocean.

Frontline and Golden Ocean will own 15% and 10% interest in the joint venture, respectively, and Trafigura will contribute its existing physical bunkering activities to the new company.

“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 joint venture will ensure our ability to source and acquire marine fuels at competitive prices on a continuous basis,” Robert Hvide Macleod, ceo of Frontline Management and Birgitte Ringstad Vartdal, ceo of Golden Ocean Management, jointly commented.

Jeremy Weir, executive chairman and ceo of Trafigura, said: “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.”

Kenneth Dam, co-head of bunkering at Trafigura, 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 joint venture’s increased base volumes and greater access to both infrastructure and credit will provide increasingly competitive bunkering supply services to our customers.”

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Frontline, Golden Ocean invest in bunkering joint venture with Trafigura