Côte d’Ivoire : DekelOil weights 85.75% in the vast Ayenouan palm oil project

DekelOil Public Ltd now holds 85.75% interest in CS DekelOil Siva Ltd, the Ayenouan palm oil project in Côte d’Ivoire that includes one of the largest crude palm oil mills in West Africa, the company on July 5 disclosed in a release.

The AIM market of the London Stock Exchange listed company said the increase of the interests from 51 % has been achieved following the completion of additional 34.75% interest acquisition from its joint partner Biopalm Energy Ltd. The transaction totaled 12,7 million £.

"We believe the timing of the increase in our interest in Ayenouan to 85.75% is excellent”, Lincoln Moore, DekelOil’CEO commented.

He underscored that 2016 is the second full year of operations at the 70,000 tonnes per annum extraction mill where the production at crude palm oil mills is already ahead of the run rate achieved in 2015 which saw 35,500 tonnes produced.

Moore further stated : “in addition, 2016 will see our kernel crushing plant make a first full year’s contribution, producing value add products, while higher margin fresh fruit bunches grown from our own 1,900 hectares of mature plantations are now being used as feedstock"

According to DekelOil Public Ltd, the remaining 14.25% of shares in the project are now subject to a Second Option Agreement.

The low-cost palm oil producer has until 20 December 2016 to exercise the Second Option Agreement that has a fixed pricing with the total outstanding representing 6.1 million Euros, before broker commissions and transaction costs.

As part of the Ayenouan project, feedstock for the mill comes from several co-operatives and thousands of smallholders. But the company has nearly 1,900 hectares of its own plantations and a world-class nursery that can provide 1 million seedlings per year.

DekelOil Public Limited plans to start activities in its second exploitation zone at Guitry where it holds rights to over 24 000 ha for oil palm development.