GF Offshore disrupts bunkering industry with smart partnerships

TheEdge Wed, May 22, 2019 05:37pm - 4 years View Original


KUALA LUMPUR (May 22): GF Offshore Sdn Bhd, an integrated bunkering solutions provider, has established smart partnerships with various corporations from the oil and gas value chain, which it says earmarks the start of an emergent integrated business model for the industry.
 
In a statement, GF's chief executive officer Datuk Seri Mahendran Chelladorai said GF chooses to form smart partnerships that create an asset-light business model with lower gearing, which could lead to higher returns.
 
“Many oil and gas companies believe they need to build capabilities across the entire value chain. In a dynamic market, however, the owner-operator model is a disadvantage as the costs incurred might outweigh the value generated," he said.

GF is a subsidiary-in-waiting of WeConnect Tech International Inc, a public-listed e-commerce company in the US. WECT acquired a 60% stake in GF following a share exchange agreement inked on March 18 this year.

WECT founder/director and chairman of GF, Datuk Brian Wee, witnessed the signing of two agreements and a Memorandum of Understanding by Mahendran and representatives of its smart partners, including port partner Lumut Maritime Terminal Sdn Bhd, storage partner KL Bunkering (M) Sdn Bhd, and collateral management partner, PM Access World (Malaysia) Sdn Bhd.

GF has signed an MoU with its logistics partner, Straits Inter Logistics Berhad, at an earlier date.

“Our five-pronged smart partnership approach involves collaboration with various parties who are expert in their respective fields, such as port owner/operator, fuel suppliers, storage providers, logistics specialists and collateral management experts. We are able to form strategic partnerships and provide integrated bunkering solutions as a result of a wide network of suppliers, vendors and service providers in Malaysia and around the region," Mahendran said.

As the first and sole bunkering operator in Lumut Port, GF said it has the first mover advantage in a strategic
base that is located at the center of the Straits of Malacca, the second busiest waterway in the world that sees more than 84,000 vessels travelling the route per annum.

It aims to establish the first Floating Storage and Offloading (FSO) operations at Lumut Port in anticipation of an expected high-volume demand.

“To realise our transformational roadmap, accelerate our expansion and create value for our shareholders, we have anchored GF’s growth trajectory with two blue-chip companies. We will also be servicing vessels from other local and international corporations at Lumut Port. We also want to capture market share of vessels traversing the Straits of Malacca by promoting Lumut Port as a cheaper and time-saving alternative to Singapore.

“With these, we aim to trade a conservative 1.2 million MT fuel per annum, and to double the volume within the next two years," said Mahendran, adding the company is gearing up to be a serious offshore player that specialises in bunkering solutions for the oil and gas industry in Asia Pacific.

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