Oil Bunkering Facility

8/14/2019 Oil Bunkering Facility

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The Bold New Venture for Big Capital - Tank Farms forThe Bold New Venture for Big Capital - Tank Farms for

Hydrocarbon Products Storage & Related ServicesHydrocarbon Products Storage & Related Services


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VisionVision

World-class provider ofWorld-class provider of

independent tanks storage andindependent tanks storage andrelated logistics services torelated logistics services to

regional and international oil andregional and international oil and

petrochemical industriespetrochemical industries


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Business AspirationsBusiness Aspirations To provide investors with a unique long-term investmentTo provide investors with a unique long-term investment

opportunity that promises superior financial returnsopportunity that promises superior financial returns in ain astrategic sector of the global oil businessstrategic sector of the global oil business

To create a lucrative spin-off business that benefits fromTo create a lucrative spin-off business that benefits fromthe global network of strong contacts and pool ofthe global network of strong contacts and pool ofexpertise connected with the exploration, production andexpertise connected with the exploration, production andtrading of crude oil resourcestrading of crude oil resources

To take business advantage of the dividends from peaceTo take business advantage of the dividends from peaceand stability in Negeri Sembilan that will enable theand stability in Negeri Sembilan that will enable thecountry to become a secure haven for energy securities ofcountry to become a secure haven for energy securities ofcountries in the regioncountries in the region

To promote and develop Negeri Sembilan into a leadingTo promote and develop Negeri Sembilan into a leadinghydrocarbon and petroleum products storage andhydrocarbon and petroleum products storage and

transshipment center apart from being an internationallytransshipment center apart from being an internationallyrecognized oil exchange center and oil trading hubrecognized oil exchange center and oil trading hub

To offer a new channel of big business that willTo offer a new channel of big business that willcontribute significantly towards increasing Negericontribute significantly towards increasing NegeriSembilans revenue and GDP.Sembilans revenue and GDP.


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Why Is This Service Crucial?Why Is This Service Crucial?

The DriversThe DriversA warehousing facility will allow for better handling of local energy

demands by traditional big buyers in the oil market because it allows themto plan ahead knowing that they could always rely on the extra supply in

hand at storage areas in case of shortfall

Limited investment for storage facilities at refineries/terminals has a huge

impact on the other operations involved in the buying and selling of oil. A

tank-for-rent service will be the perfect answer to these storage constraints

High occupancy rates in existing tank storage facilities around the world isHigh occupancy rates in existing tank storage facilities around the world is

a healthy indicator for the future growth of this sector. It is also an indicationa healthy indicator for the future growth of this sector. It is also an indication

of the rising demand for strategic warehousing for oil supplies as factors ofof the rising demand for strategic warehousing for oil supplies as factors of

uncertainty in the international oil market continues to influence pricing anduncertainty in the international oil market continues to influence pricing and

inventoryinventory


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The DriversThe DriversContinued economic growth in Asia Pacific will have a direct andContinued economic growth in Asia Pacific will have a direct andunprecedented effect on global energy consumption. The supplyunprecedented effect on global energy consumption. The supplylifeline needed to feed the demand, will be complex enough tolifeline needed to feed the demand, will be complex enough towarrant extra storage facilities for shipment stop-overs andwarrant extra storage facilities for shipment stop-overs andreserve inventoryreserve inventory

To plan for a National Strategic Petroleum Reserve is a majorTo plan for a National Strategic Petroleum Reserve is a majoraim in the drive for nations to ensure their energy security foraim in the drive for nations to ensure their energy security forcontinued domestic economic growth. Trusting their petroleumcontinued domestic economic growth. Trusting their petroleumstocks to the safekeeping of a storage facility located in astocks to the safekeeping of a storage facility located in a

peaceful and stable region like Negeri Sembilan will be a highpeaceful and stable region like Negeri Sembilan will be a highpriority agendapriority agenda

Negeri Sembilans coastal area lies along the Malacca Strait Negeri Sembilans coastal area lies along the Malacca Strait lucrative oil shipping lane waiting to be tappedlucrative oil shipping lane waiting to be tapped


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Major oil trade movementsMajor oil trade movements


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Oil production by areaOil production by area


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Oil consumption by areaOil consumption by area


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Oil product consumption by regionOil product consumption by region


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ServicesServices(Full complement)(Full complement)

Storage and handling of Petroleum,

Gasses & Chemical Liquids..

Blending.. Treatment.. Repackaging..

Distribution & Warehousing


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Products PhasesProducts PhasesShort TermShort Term

Petroleum products: crude oil, gasoline, kerosene,Petroleum products: crude oil, gasoline, kerosene,

Naphtha, Gas oil and fuel oilNaphtha, Gas oil and fuel oil

Medium TermMedium Term

Basic Chemicals: e.g. Olefins, Aromatics, Solvents, ResinsBasic Chemicals: e.g. Olefins, Aromatics, Solvents, Resins

Longer TermLonger Term

Gasses: LNG, LPG, CNGGasses: LNG, LPG, CNG


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Project EconomicsProject Economics(Sample)(Sample)

Assumptions:Assumptions: Tankages:Tankages: Crude oil (3), Gas oil (2) and Gasoline (2)Crude oil (3), Gas oil (2) and Gasoline (2) Investments :Investments : $ 20 millions (Opex $ 4.5$ 20 millions (Opex $ 4.5

mils/year)mils/year) Tanks farm : $ 14.2Tanks farm : $ 14.2 SBM/Pipelines : $ 3.8 milsSBM/Pipelines : $ 3.8 mils

Infrastructure : $ 2.0 milsInfrastructure : $ 2.0 mils

Operations:Operations:

Interest rate per annum : 3.5 %Interest rate per annum : 3.5 % Maintenances + utilities : $ 2.4 Mil/yearMaintenances + utilities : $ 2.4 Mil/year

Rental Charge Cents 0.03 Per bbls./day.Rental Charge Cents 0.03 Per bbls./day.


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Project EconomicsProject Economics(Preliminary)(Preliminary)

Payback PeriodPayback Period::40% Occupancy = 3 years40% Occupancy = 3 years (NPV @16% ($ 49.5(NPV @16% ($ 49.5

Mil)Mil)

30% Occupancy = 3.5 years30% Occupancy = 3.5 years (NPV @16% ($28.3(NPV @16% ($28.3

Mil)Mil)20% Occupancy = 5 years20% Occupancy = 5 years (NPV @16% ($7.2(NPV @16% ($7.2

mil))mil))

NPVNPV 18%18% 20%20% 22%22%

40% Occupancy =40% Occupancy = $42.3$42.3 $36.2$36.2 $31.1$31.130% Occupancy =30% Occupancy = $23.5$23.5 $19.5$19.5 $16.0$16.0

20% Occupancy =20% Occupancy = $4.7$4.7 $2.7$2.7 $1.0$1.0


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Clients / CustomersClients / Customers

Private and state-owned oilPrivate and state-owned oil

companiescompanies

Refiners / ProducersRefiners / Producers

Petrochemical companiesPetrochemical companies

International Traders in petroleumInternational Traders in petroleum

and chemical productsand chemical products


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Key to SuccessKey to Success

Regional Demand / SupplyRegional Demand / Supplyimbalancesimbalances

Need to export / import or forNeed to export / import or for

intermediate storageintermediate storage Operational excellence and flexibilityOperational excellence and flexibility

to accommodate changes in productsto accommodate changes in products

flowsflows Strategic location crucial factorStrategic location crucial factor Mix of customers and functions giveMix of customers and functions give

stability over timestability over time

Oil Bunkering Facility

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