Commercial Agreements

Off-Take Agreements

Demand Visibility

Secured Before Operations Begin

Prior to commencing operations, AFK Petroleum has already secured formal Expressions of Intent (EOIs) from two prominent companies for the purchase of refined petroleum products, confirming domestic demand for the refinery's output.

EOI Signed · 31 October 2025

Global Business Singapore

  • Singapore-headquartered trading company expressing intent to source gasoil (diesel) directly from AFK Petroleum upon refinery commissioning
  • Reflects international trading interest in the UAE's domestic refining output, with Singapore as a key hub for product placement and distribution
  • Initial engagement focused on establishing a reliable, recurring supply relationship ahead of first production
  • Anticipated initial purchase volumes, with stated appetite to scale procurement as the refinery demonstrates operational stability
EOI Signed · 30 October 2025

Nimex Petroleum Limited

  • Established petroleum trading company confirming intent to enter a commercial offtake arrangement for gasoil and refined middle distillates
  • Agreement conditional on mutually accepted commercial terms including pricing mechanisms, delivery schedules, and quality specifications
  • Offtake volumes tied to successful completion of refinery commissioning and performance testing milestones
  • Structured to allow volume step-ups as the refinery reaches full throughput of 450–500 tonnes per day, maximising buyer confidence in supply continuity

Combined Initial Off-Take Volume

The two secured EOIs establish expected initial purchase volumes upon refinery commissioning, subject to final commercial terms. Both parties have indicated potential to increase volumes once operations are tested and fully operational.

8,000–10,000 Metric Tons per Month (initial)
Market Context

Strong UAE Domestic Demand

The UAE domestic market provides a robust foundation for AFK Petroleum's commercial model, offering early demand visibility and reducing dependence on volatile export routes.

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Domestic Market Focus

By targeting UAE domestic buyers, AFK eliminates the need for export shipping, reduces logistics costs, and benefits from the stability of a regulated, high-demand local market.

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Margin Expansion During Disruption

Geopolitical disruptions in energy markets often result in tightening refining capacity and widening margins for middle distillates such as diesel and kerosene, which are AFK's primary product categories.

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Early Demand Secured

With EOIs already secured, AFK enters commissioning with confirmed buyer interest, providing revenue visibility from day one of operations and reducing commercial risk for all stakeholders.