Grand Bahama Group, an associate of TXO (LON:TXO), has won what it describes as a significant contract for waste oil treatment in the Bahamas.
The new contract is for the remediation of used oils from three storage "ponds" in a major oil storage and transhipment terminal on Grand Bahama.
An initial 43,000 barrels taken from the first pond is being held in a tank and will be processed first.
Remediated oil collected from the tank will be sold to a US based refinery at market value, with GBG’s subsidiary being entitled to a "material proportion" of the proceeds of sale.
Work will then commence on the oil remaining in pond 1 and in ponds 2 and 3.
Morgan Oil, the GBG subsidiary handling the waste oil, will work with waste oil re-processor Oil Recovery Services and valve specialist Oil Tech Royalties on the contract. Both companies are also part of TXO's portfolio of investments.
“The commercial prospects for the successful execution of this contract are significant for MOM and its subcontractors,” it added.
“The project is expected to be completed within the next three months with the first consignment of oil being sold by the month end.
Tim Baldwin, TXO’s chairman and chief executive, added: "TXO is delighted with this contract which goes a considerable way to endorsing not only our investment in GBG, but also the joined-up strategy of our investment in ORS and OTR, where the whole is greater than the sum of its parts.”
TXO has a 35.67% stake in GBG.
more to follow