MARKET DEVELOPMENT
India’s 3F Oil Palm to Boost Gabon’s Palm Oil Industry With $200M Venture
India’s 3F Oil Palm to Boost Gabon’s Palm Oil Industry With $200M Venture
30/03/2016 (Wall Street Journal) - India’s commodity giant, 3F Oil Palm Agrotech Ltd. plans to invest $200 million on a giant palm oil project in plans to build in Gabon, a key swing to boost the tiny mineral-rich African nation facing the glut of plunging world oil prices.
Gabon’s Minister of Agriculture Mathieu Mboumba Nziengui said the Indian equity’s Managing Director Sanjay Goenka held talks with Gabon’s Premier Daniel Ona Ondo last weekend for negotiations toward inking an accord authorizing the company to secure 40,000 hectares of land for its palm oil project.
“This accord would lead to the delivery of 40,000 hectares of land for the production and refining of palm oil, creation of 4,000 direct and indirect jobs--but most importantly--the investment of US$200 million,” Minister Nziengui said, citing Mr. Goenka’s commitment to the project.
Palm oil is one of several economic segments Gabon’s government is opening to diversify its economy and shrug off the weight of plunging global oil prices and its aging wells that is negatively impacting its economy.
Gabon President Ali Bongo Ondimba had announced his government’s strategy to diversify the nation’s economy from mainly crude oil production, whose aging wells has caused output to plunge in recent years.
With about 230,000 barrels of crude oil daily, oil accounts for about 50% of Gabon’s GDP, according to government figures, which indicates that the country’s economy has also been hit by recoiling crude oil prices.
Gabon’s Minister of Agriculture Mathieu Mboumba Nziengui said the Indian equity’s Managing Director Sanjay Goenka held talks with Gabon’s Premier Daniel Ona Ondo last weekend for negotiations toward inking an accord authorizing the company to secure 40,000 hectares of land for its palm oil project.
“This accord would lead to the delivery of 40,000 hectares of land for the production and refining of palm oil, creation of 4,000 direct and indirect jobs--but most importantly--the investment of US$200 million,” Minister Nziengui said, citing Mr. Goenka’s commitment to the project.
Palm oil is one of several economic segments Gabon’s government is opening to diversify its economy and shrug off the weight of plunging global oil prices and its aging wells that is negatively impacting its economy.
Gabon President Ali Bongo Ondimba had announced his government’s strategy to diversify the nation’s economy from mainly crude oil production, whose aging wells has caused output to plunge in recent years.
With about 230,000 barrels of crude oil daily, oil accounts for about 50% of Gabon’s GDP, according to government figures, which indicates that the country’s economy has also been hit by recoiling crude oil prices.