Modular Refinery Funding PITCH Presentation GENERIC EXAMPLE. WRENConsultingLimited

Transcription

1 Modular Refinery Funding PITCH Presentation GENERIC EXAMPLE

2 This is an example: Modular Refinery can be between 5,000 and 20,000 bpd. This presentation is showing you just what a 5,000 bpd refinery could profit your company. 5,000Bpd Modular Refinery and Tank Farm

3 Sample letter from funding source.

4 Project Highlights Phase 1 Started with Technical Partner Owner 5 Hectares of land - example $40mUSD Funding Need Off taker List your IOC or Blue Chip 5,000bpd Refinery Tank Farm Location on the Refinery

5 Problems worth solving Increase Nigeria's Refinery Capacity Competitive Prices Refined Products High Quality Products to Market Adding Value Nigeria's Oil Industry Create Employment Opportunities

6 Our solutions 5,000bpd Refinery and Tank Farm Align with Nigeria's Specs Low Prices Minimum Impact of Local Environment - During Construction and Operation Supply Local Business and Poplulation

7 Target market Nigeria prospects 170,000,000 Population Kerosene Diesel Naphtha World Market

8 Supply & Demand Nigeria During 2014 there was an estimated shortfall in Nigeria s production of refined products for 271,2000bpd PMS, 44,100bpd HHK, and 101,400bpd AGO. Refined Products Import Estimates Your Company is seeking to refine only 5,000 bpd of crude oil, there is sufficient Demand for the refined products.

9 Competitive landscape Competitors(Imported) Refined Products Questionable Specs Tanker Contamination During Shipping Search for Offtaker Higher Prices Landed Cost $376 per MT Port Congestion How our solution is better Self Refined Products Higher Quality and with no exposure Easier access to Market Competitive Prices No Landed Cost Decentralized

10 Funding needed $40M Purchase Refinery - $8.3mUSD Construct Tank Farm Civil Works - $25mUSD Deployment Capital - $6.7mUSD

11 Potential Sales channels Domestic Petroleum Products Distribution Product Storage IOC, NOC Trucking and Vessel Export products as requested Develop Retail Outlets

12 Marketing activities Increase Business Development Staff Work with surrounding depots Develop Retail Outlets

13 Marketing - Savings Your Company will not incur the following fees that the importer are charged. Source PPPRA as of 3/3/2016

14 Off taker Agreements When it comes to obtaining funding this is one of the critical areas that must be addressed with urgency. If you don t have agreements(loi or Contracts) with a IOC or Blue Chip it will be very hard to get Foreign Funding.

15 Crude Supply 60% of the supply of crude will becoming from NNPC, and is guaranteed by the Government. When a client obtains the LTE from DPR the agreement confirms the supply of 60%. 35 Billion barrels in a overwhelmingly large hydrocarbon reserve in Nigeria. The reaming 40% of the needed crude will becoming from This is another critical issue that must be addressed to ensure funding.

16 Potential Timeline Date March 15, 2016 May 16, 2016 June 6, 2016 April 24, 2017 June 12, 2017 Timeline Phase 1 Technical Partner Completed Funding Received from WREN Option Phase 2 - Fabrication Begins and Construction Refinery Arrives in Nigeria Refinery Operational

17 Partners and resources Engage with WREN and we bring a full solution Refinery Technical Partner, EPC(Tank Farm) Partner, and Funding Partner. EPC TBD We blocked the names of the companies Vfuels on this slide. Funding option will determine the EPC Company that will manage and construct the tank farm. Nationwide Group As International Fund Providers, we specialize in creating custom tailored finance solutions based on the specific needs of our clients. Nationwide Finance works with the largest lending institutions and Export Credit Agencies (EAC) across the globe. As well as, a proprietary network of boutique banks, private finance institutions, and equity firms. VFuels Designs, Engineers, and Fabricates Modular Topping Plants, Modular Refineries, and Modular Gas Plants WREN Consultimg Limited Advisory firm that specializes in helping small to mid-size Oil and Gas companies in Nigeria. Focus on internal operations and funding.

18 Financial projections Following based on 5,000 bpd at $55 per Barrel

19 Cash Flow Projection

20 Balance Sheet Projection

21 Profit and Loss Projection

22 Projected Financing

23 Projected Direct Cost

24 Projected Revenue

25 Conclusion The slides were based on a 5,000 bpd refinery at $55 per barrel, and you could see that the profit per year was over $43mUSD. Take the same projections at $35 per Barrel the profit margin will be greater because the refined products here in Nigeria are still high. If you are in a position to consider such a project please feel free to contact the Senior Partner of WREN Consulting Limited at ritch.wingo@wren- consulting.com or call