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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