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Be the first with the news that moves the market- African oil and gas explorer, Zenith Energy Ltd (TSXV:ZEE) is shifting direction and will now distribute and eventually manufacture PPE, during the COVID-19 crisis
- The company has already identified a suitable English PPE manufacturer and is in talks with secondary Chinese manufacturer to sure up its supply chain
- If this proves successful, Zenith may begin manufacturing PPE from its Africa-based oil and gas operations
- By manufacturing PPE, The company hopes to secure revenue during a depressed oil price, while also supporting struggling communities in the region
- Zenith Energy Ltd (ZEE) is holding steady, with shares trading for C$0.015 and a market cap of $8.66 million.
African oil and gas explorer, Zenith Energy Ltd (TSXV:ZEE) is shifting direction to distribute and eventually manufacture PPE during the COVID-19 crisis.
The company is initially sourcing its PPE from the UK, which will then be shipped to Africa. Zenith plans to distribute the equipment mainly in the DR Congo, as well as other African countries in which it operates.
If this proves successful, Zenith may begin manufacturing PPE from its African-based oil and gas operations, to save on shipping and improve overheads.
The company has already identified a suitable English PPE manufacturer and is in talks with secondary Chinese manufacturer to sure up its supply chain.
The sudden change in direction has prompted the company to provide an extensive list of rationales.
First and foremost, the company has noted the difficulty is procuring PPE in developing countries. This is placing undue stress on already strained healthcare services in Africa. As the company wants to operate in this region, its benefits Zeneith to aid local governments in managing the pandemic.
Secondly, the recent oil price crash has shook the industry at large. By shifting into a booming sector, the company hopes to lower its production costs and secure its oil and gas operations.
Andrea Cattaneo, CEO of Zenith Energy, said the company’s focus remains on developing oil and gas assets in Africa but that the present environment requires adaptations.
“We recognise that the world is currently experiencing unprecedented challenges for which civil society and commercial enterprises must proactively find ways of adapting to successfully overcome the challenges at hand.
“The manufacturing of face masks and sanitising gel presents a low-cost, relatively simple, both commercial and humanitarian opportunity to enhance Zenith’s settlement in Africa at a time of world crisis,” he said
The company is currently looking at face-mask manufacturing equipment and expects to finalise an order by the end of May.
Zenith Energy Ltd (ZEE) is holding steady, with shares trading for C$0.015 at 9:38am EST.
