CVO Petrochemical to buy Tk 15cr oil tanker

CVO Petrochemical, a listed petrochemical company, has decided to buy an oil tanker that costs Tk 12 crore.

Khwaza Mowin Uddin Hossain, company secretary of CVO Petrochemical, said they decided to make the purchase in a bid to reduce the transport cost for raw materials.

The company has not owned a tanker till date, he added.

CVO Petrochemical signed an agreement with M/S MA Bashar and Brothers to purchase the 2,073-tonne capacity tanker that is made in Japan.

By buying this oil tanker, the company can ensure better quality, quantity, safety and security for Naphtha, a raw material of its fuel.

It will save a substantial amount of the carrying cost of Naphtha from Eastern Refinery Ltd.

Besides, it will also have the opportunity to generate extra income by carrying other products of other companies, CVO Petrochemical said in a disclosure posted on the DSE website.

In addition, the company can use the oil tanker to carry condensate from mother vessels to its storage tank, saving the carrying cost in this regard at the same time.

CVO Petrochemical produces import substitute fuel products for the country.

The production capacity of its fractionation plant is 50,000 tonnes per year.

The raw material, natural gas condensate, used by the company is produced locally from the Sylhet Gas Fields.

It's main products are motor spirit, high speed diesel, and mineral turpentine.

CVO Petrochemical incurred a net loss of Tk 6.29 crore in 2020-21 while it was Tk 1.28 crore in the negative the previous year.